Royal Mail is committed to meeting its letter delivery targets by May next year as part of a £500 million transformation plan. The company will allow part-time postal workers to work longer hours to enhance service quality.
The recent agreement with the Communication Workers Union (CWU) has resolved a long-standing dispute over the second-class post reformation. Royal Mail will gradually introduce a new nationwide letter delivery model starting next month, discontinuing Saturday second-class deliveries and transitioning to alternate weekdays – three days one week, and two days the next.
With planned investments and operational changes, Royal Mail aims to achieve an 85% first-class next day delivery rate within nine months and reach the 90% target set by Ofcom within a year. Additionally, the company plans to deliver 93% of second-class letters within three days by May next year and hit a 95% target.
Following a record fine from Ofcom in October for missing delivery targets, Royal Mail is prioritizing performance improvement. The investment will also allow around 6,000 part-time postal workers to increase their weekly hours as part of the service reforms. The funding for these changes will be sourced from Universal Service adjustments.
Stamp prices have risen significantly, with first-class and second-class stamps now priced at £1.80 and 91p, respectively. Royal Mail’s owner, Daniel Kretinsky, expressed regret for the delays in postal deliveries but emphasized that the situation was not deteriorating significantly.
Royal Mail’s CEO, Alistair Cochrane, acknowledged the need for service enhancement and outlined a comprehensive plan backed by substantial investment over the next five years. Ofcom has urged Royal Mail to swiftly implement this plan to ensure a consistent and significant performance improvement.
The recent agreement with CWU will expand the Universal Service reforms to more delivery offices, with plans for full network implementation by December. Dave Ward, general secretary of CWU, emphasized the importance of proper resourcing, workforce retention, and worker involvement in implementing the proposed changes to address customer service issues at Royal Mail.