Royal Mail has announced a £500million investment boost in an effort to improve the company's delivery times, while confirming plans to roll back its second-class postal service on weekends.
Earlier today, the postal operator announced it will begin introducing a revised letter delivery system across the country next month, pending consultation with union members.
This development follows a deal struck with the Communication Workers Union last week, resolving a protracted disagreement over proposed changes to second-class mail services.
Under the new arrangements, second-class letters will no longer be delivered on Saturdays and will instead arrive on alternate weekdays only.
Royal Mail overhaul to roll back postal delivery service despite £500m investment
| PAThe CWU agreement, currently being put to members for a ballot, will see reforms initially extended to 240 additional delivery offices before reaching the entire 1,200-strong network by December.
These investment and operational changes are designed to lift first-class next-day delivery rates to approximately 85 per cent within nine months of implementation, before meeting Ofcom's 90 per cent threshold within a year.
For second-class mail, Royal Mail has pledged to achieve 93 per cent delivery within three days after nine months, rising to the regulatory target of 95 per cent by May next year.
The £500million funding package includes provisions for roughly 6,000 part-time postal workers to take on additional hours as required under the reformed service model.
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Britons may see a change to Royal Mail delivery services in the near future | GETTYThese investments will be financed through savings generated by alterations to the Universal Service. Ofcom approved the scaling back of second-class deliveries last year, with a pilot scheme launching across 35 delivery offices from July 28.
However, the expansion of these changes stalled due to the dispute with the CWU, halting progress across the wider network.
Royal Mail, now owned by Czech billionaire Daniel Kretinsky following his acquisition of parent company International Distribution Services last year, received a record £21million penalty from Ofcom in October.
The fine came after the operator managed to deliver only 77 per cent of first-class mail and 92.5 per cent of second-class items on time during 2024-25.
Ofcom has taken action against Royal Mail in the past | PAFrom April 1, the regulator reduced its delivery requirements, lowering the first-class next-day target from 93 per cent to 90 per cent and the second-class three-day standard from 98.5 per cent to 95 per cent.
Ofcom simultaneously introduced an enforceable backstop measure requiring 99 per cent of all mail to arrive within two days of the target deadline.
Royal Mail chief executive Alistair Cochrane acknowledged past shortcomings, stating: "We recognise our service hasn't always been the standard our customers rightly expect and we're determined to do better."
He added: "The plan we've set out today shows how we'll make a step change in performance across the UK, backed by £500million of investment over the next five years."
Ofcom's group director for infrastructure and connectivity, Natalie Black, responded: "Now that's published, Royal Mail needs to get on and implement it. Their plan must deliver significant and continuous improvement, with performance getting back on track."
CWU general secretary Dave Ward offered a cautious welcome, saying: "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."