Royal Mail has pledged to achieve its letter delivery targets by May next year with a £500 million overhaul plan. The company, which is now privately owned, will allow part-time postal workers to increase their hours to enhance service quality.
The recent agreement with the Communication Workers Union (CWU) has resolved a long-standing dispute over the restructuring of second-class post. Royal Mail is set to implement a new letter delivery model nationwide starting next month.
As part of the changes, Saturday second-class deliveries will be discontinued, and deliveries will be scheduled for alternate weekdays – three days one week and two days the following week. The company aims to enhance first-class next-day delivery to approximately 85% within nine months and reach the 90% target set by Ofcom within a year.
Royal Mail plans to achieve a 93% delivery rate for second-class letters within three days within nine months and aims to hit a 95% target by May next year. The company faced a £21 million fine from Ofcom in October for failing to meet delivery targets in the previous year.
The £500 million investment in the service over the next five years will enable around 6,000 part-time postal workers to extend their weekly hours. The funding for these improvements will come from savings generated by changes in the Universal Service.
Stamp prices have risen, with first-class stamps now priced at £1.80 and second-class stamps at 91p. Despite acknowledging delays, Royal Mail’s owner, Daniel Kretinsky, stated that the situation was not worsening.
Royal Mail’s CEO, Alistair Cochrane, emphasized the company’s commitment to improving service standards, backed by a significant investment. Ofcom has urged Royal Mail to promptly implement its plan for change and ensure continuous improvement in performance.
Last year, Ofcom approved Royal Mail’s plans to reduce second-class letter deliveries, starting in July. However, the full-scale implementation was delayed due to disagreements with the CWU. The recent agreement will extend Universal Service reforms to additional delivery offices, with full network implementation expected by December.
CWU’s general secretary, Dave Ward, welcomed proposals to address customer service shortcomings but stressed the importance of practical implementation on the ground. Postal workers seek assurance regarding resources, workforce retention, employee involvement in change deployment, manageable workloads, and effective issue resolution.