Royal Mail's Plea to Stop Saturday Letter Delivery: Is It Time for Reform?

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https://www.claytoncountyregister.com/n ... -2/315119/

Royal Mail’s request to halt Saturday letter delivery may seem premature given its current struggles to meet performance standards. Last year, only 74% of first-class letters were delivered on time, significantly below the target of 93%. Even Ofcom, the regulator known for leniency, grew tired of pandemic-related excuses and initiated an investigation into Royal Mail.

While some argue that reform should only be considered after fixing the existing system, there are compelling reasons why a review of the universal service obligation (USO) is necessary. The USO requires Royal Mail to deliver letters six days a week and parcels five days a week to every address in the UK.

Firstly, the drastic decline in letter volumes has impacted the economic viability of delivery. The number of letters sent in the UK has plummeted from a peak of 20 billion in 2004-05 to just 7 billion today. This decline cannot be solely attributed to rising stamp prices but reflects the widespread use of email. Eventually, the inefficiencies of thinly spreading operations become unavoidable. Ofcom estimates potential savings of £125m-£225m by eliminating Saturday delivery, which could be redirected towards improving the five-day service.

Secondly, the overwhelming majority of customers are indifferent to receiving letters on Saturdays. In a 2020 survey conducted by Ofcom, 97% stated that a five-day letter service would meet their postal needs. It appears that most individuals are more concerned about weekend deliveries of online purchases, an area where Royal Mail aims to expand, rather than receiving marketing materials from banks or other institutions.

Thirdly, several other European countries have already relaxed their USO equivalents. France has extended delivery times for second-class letters, and Italy offers alternate day deliveries in rural areas. The UK would not be an outlier in seeking reform, although maintaining uniform requirements across the country is seen as fair.

To ensure fairness, it is vital to protect publishers of weekly titles who rely on timely delivery. Allocating a portion of the potential savings towards guaranteeing their service would be a reasonable solution.

Ultimately, the power lies with Parliament to amend the USO, and ministers have hesitated to address the issue. However, with increasing support even from the Communications Workers Union, it seems evident that the transition to a Monday-to-Friday letter service is inevitable. If Ofcom can enforce reliability during these days, most people would be satisfied with the change.