Royal Mail has reached an agreement with the Communications Workers Union to axe second-class letter deliveries on Saturdays across the United Kingdom.
The postal service will instead shift these deliveries to alternate weekdays, ending a prolonged dispute between the company and the union over reforms to second-class post.
The announcement follows a stamp price increase earlier this month, with first-class stamps now costing £1.80 and second-class stamps priced at 91p.
Alistair Cochrane, Royal Mail’s chief executive, said: "This agreement with the CWU paves the way for Universal Service reform rollout and represents a significant investment in our people."
He added the changes would support "a reliable, efficient and financially sustainable postal service" for customers nationwide.
The Universal Service reforms will now be expanded to an additional 240 delivery offices as part of a broader trial programme.
Royal Mail aims to complete the rollout across its network of 1,200 offices by December.
Under the new arrangements, second-class letters will be delivered on either Monday, Wednesday and Friday, or Tuesday and Thursday, following a fortnightly cycle.
Second-class Saturday deliveries to end as Royal Mail reaches deal with union
| PAFirst-class post will continue to be delivered six days per week.
Royal Mail had been trialling the revised delivery schedule at 37 offices since February, with regulator Ofcom estimating potential annual savings of between £250million and £425million.
The company previously provided Saturday letter deliveries as part of its six-day service, with items typically arriving by approximately 4.30pm.
The agreement also introduces changes to pay and working conditions for Royal Mail staff.
LATEST DEVELOPMENTS:
First class stamps from Royal Mail are now priced at £1.80
| GETTYEmployees who joined the company on or after December 1, 2022, will receive a pay increase of 4.75 per cent, while those on older contracts will see salaries rise by three per cent.
New recruits will be offered positions based on a standard 37-hour working week under updated contractual arrangements.
Around 6,000 part-time postal workers will also be given the option to increase their average weekly hours.
The deal follows extended negotiations between Royal Mail and the CWU over changes to second-class postal services.
The reforms come as letter volumes continue to decline, with deliveries falling from a peak of 20 billion in 2004-05 to 6.6 billion in 2023-24.
Royal Mail’s letter revenues have dropped from £6.9billion to £3.7billion since 2008, and recorded losses of £348million in 2023-24 despite a series of stamp price increases.
Ofcom has fined Royal Mail three times since 2020 for failing to meet delivery targets, including a £10.5million penalty in 2024.
Consumer group Citizens Advice said: "Woeful track record of failing to meet delivery targets, all the while ramping up postage costs."
Tom MacInnes, director of policy at the organisation, said Ofcom had "missed a major opportunity to bring about meaningful change".