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The UK’s regulatory agency for communications has proposed two potential options for altering letter deliveries as part of a review that could result in significant cost savings for Royal Mail.
According to Ofcom, there are two main possibilities for managing mail delivery: sending letters to homes and businesses five or three times a week, or reducing delivery speed over three or more days.
According to the regulator, the initial action could potentially save the company anywhere from £100m to £650m, while the second action could save between £150m and £650m.
After receiving approval from Downing Street, Royal Mail will not be permitted to discontinue Saturday deliveries.
However, according to Ofcom’s CEO Dame Melanie Dawes, modifications to the postal system may be necessary due to a significant decrease in the number of letters being sent annually since 2011, coupled with a rise in the volume of parcels being sent.
According to Ofcom, Royal Mail may decrease the frequency or pace of deliveries in order to reduce costs.
At present, Royal Mail is required to deliver letters to all 32 million UK addresses six days per week at the cost of a stamp, regardless of the destination of the letters.
The current service requirement is not sustainable, according to Royal Mail, who reported a loss of £419 million in the previous fiscal year.
Melanie stated that postal workers play an integral role in our society and are essential to communities throughout the country. However, there has been a decrease in the number of letters being sent since 2011, while the number of parcels being received has increased.
The universal service has remained unchanged since then, but it is becoming outdated and will no longer be able to be sustained if we do not take action.
We have proposed potential changes for the improvement of universal postal services, in order to spark a conversation on its future. In the meantime, we are ensuring that prices will not become too expensive by limiting the cost of second class stamps.
The spokesperson for the Prime Minister stated that Ofcom is currently examining the future of Royal Mail.
The Prime Minister strongly believes that Saturday deliveries are crucial for businesses, especially publishers, as they provide flexibility and convenience. The Prime Minister is opposed to the idea of eliminating Saturday deliveries.
Therefore, we will witness the actual results. However, due to the significance of these shipments, especially for businesses, it is not something we would tolerate.
Source: independent.co.uk
