Royal Mail is facing a forced institutional overhaul after new data revealed that just 73.5% of first-class letters arrived within the target of one working day. The industry regulator, Ofcom, is now preparing to impose a radical restructuring of the universal service obligation that could see second-class deliveries scaled back from six days a week to three or even two.
The figures, published this morning, mark the worst performance since penalties for late delivery were introduced. Under current rules, Royal Mail must deliver 93% of first-class mail on time. Missed targets have triggered automatic fines, but their impact on service has been negligible.
Ofcom’s chief executive, Dame Melanie Dawes, said the changes are necessary to prevent the postal network from collapsing. “We cannot afford to stand by while a vital public service deteriorates. The question is not whether we reform, but how quickly we can do it,” she stated.
The proposal includes slashing second-class delivery days from six to five, three, or even two per week. First-class deliveries would be protected for now, but critics warn that any reduction in service risks isolating older people and rural communities.
Unite the union, which represents Royal Mail workers, condemned the plan as a prelude to privatisation. “This is a blueprint for destroying a public asset built up over 500 years. Ofcom and Royal Mail’s shareholders are colluding to sacrifice postal workers’ jobs and community services on the altar of profit,” said Brian Scott, Unite’s national officer for postal workers.
Small business owners are also alarmed. For many, the postal network remains a lifeline for sending invoices and goods to customers who cannot afford couriers. “Every day’s delay hurts my cash flow. But if deliveries drop to twice a week, I might as well shut up shop,” said Julie Akhtar, who runs a craft supply business from her home in Cumbria.
The watchdog’s proposals are out for consultation until March, with final reforms expected next summer. But the clock is ticking. Royal Mail lost £419 million last year, and its owner, International Distributions Services, has threatened to walk away from the universal service obligation entirely unless costs are slashed.
Meanwhile, postal workers face an uncertain future. The company has announced plans to cut 10,000 jobs by August, with more expected if delivery days are reduced. In sorting offices across the country, morale is at rock bottom. “We’re doing our best with fewer vans, fewer staff, and more parcels than ever,” said a postwoman in Manchester who asked not to be named. “They blame us for the delays, but we’re not the ones selling off the network.”
The government has so far remained silent, but pressure is mounting. MPs on the Business and Trade Committee have called for an emergency debate. For families waiting for birthday cards, bills and medical appointments, every day without a letter is a reminder of a system in decline.
