Royal Mail to Reduce Second-Class Post Deliveries Amid £500m Investment
Royal Mail has announced that second-class post will be delivered every other weekday starting next month as part of a £500 million investment plan aimed at addressing late deliveries. This change follows a nationwide rollout planned for May, after a trial period that began in July.
The delivery company reached an agreement last week with the Communication Workers Union (CWU) and Unite, resolving a prolonged dispute regarding the overhaul of second-class post services. The CWU will now conduct a ballot among its members concerning these changes.
First-class post delivery schedules will remain unchanged, continuing daily from Monday to Saturday. Parcel deliveries will also remain unaffected, continuing up to seven days a week.
Commitment to New Delivery Targets Following Regulatory Fines
Royal Mail has committed to meeting new delivery targets set by the regulator, Ofcom, by next May. The company was fined last October for failing to meet these targets, having delivered only 77% of first-class post and 92.5% of second-class post on time during the 2024-25 period.
The £500 million investment over the next five years includes provisions allowing 6,000 part-time postal workers to increase their average weekly hours if necessary. This investment will be funded through savings generated by changes to the universal service.
Despite criticism from Citizens Advice regarding service quality, Royal Mail has increased postage prices to £1.80 for a first-class stamp and 91p for second class. In February, the company faced complaints over missed delivery rounds and service disruptions.
Union Response and Workforce Concerns
CWU General Secretary Dave Ward commented on the proposals:
“We welcome any serious proposal that seeks to reverse customer service failings at Royal Mail, but what really matters is what happens on the ground to make that change happen.
“Postal workers … need answers over whether the workforce will be properly resourced and retained, whether they will have a real say over how change is deployed, what manageable workloads look like, and how serious issues are fixed.”
“Royal Mail’s attitude of ‘running the company with top-down command and control methods, and prioritising finance over staffing and customer quality must end.’ Its track record of sticking to its promises was ‘not great’, prompting the union to ask the government to continue holding the company to account.”
Projected Improvements and Regulatory Targets
Royal Mail expects to improve first-class next-day delivery to approximately 85% of post within nine months of implementing the changes, aiming to reach the 90% target set by Ofcom within a year. The company also pledged to deliver 93% of second-class letters within three days within nine months, reaching the 95% target by May next year.
Ofcom has lowered delivery targets effective from 1 April, reducing the first-class next-day delivery target from 93% to 90%, and the second-class three-day delivery target from 98.5% to 95%. Additionally, the regulator introduced a new enforceable backstop delivery target requiring that 99% of mail must be delivered no more than two days late.
Leadership Statements and Ownership
Royal Mail Chief Executive Alistair Cochrane stated:
“We recognise our service hasn’t always been the standard our customers rightly expect and we’re determined to do better.”
“The plans would lead to a ‘step change’ in performance across the UK.”
This restructuring follows the acquisition of International Distribution Services, Royal Mail’s parent company, by Czech billionaire Daniel Křetínský’s EP Group a year ago.
