
People living on Scotland's islands are facing inconsistent and expensive postal deliveries, a new report has found, significantly impacting consumers and businesses.
Royal Mail was sold to Czech billionaire Daniel Křetínský last year, and is currently subject to an Ofcom investigation after missing its minimum delivery targets for a fourth consecutive year, delivering 75.7% of first class mail on time against a target of 93%.
The company says it is investing £500million to improve service.
Royal Mail's service for island communities has come under scrutiny in recent months and years.
Last month agency workers had to be brought in for Mull after the service "collapsed", while in 2022 Islay residents were left without any deliveries for more than a week due to high volumes and staff shortages.
A new report has examined the situation on the islands.
Scotland has 94 inhabited islands with a combined population of 103,000, with the population ranging from seven to 21,000.
While some islands, such as Arran in North Ayrshire and Bute in Argyll & Bute, have relatively large populations close to the central belt, and Skye is connected to the mainland by a bridge much of the island population is in the Shetlands and Western Isles (Na h-Eileanan Siar) and connects to the mainland via air and sea.
A Consumer Scotland report into the postal service focused on Na h-Eileanan an Iar, Orkney and Shetland.
A total of 54 participants included both individual consumers and small businesses as well as invited stakeholders who represented local organisations, with participants keeping postal diaries, engaging in workshops, and agreeing to interviews.
While many participants reported that they are pleased to have a postal service which works at all given they live in "rural and remote" areas, with the service keeping the islands connected, there were a number of issues raised.
The report found that surcharges of £10-50 for delivery were common, limiting consumer choice and disproportionately affecting small businesses and low-income households. Those surcharges are often only discovered at checkout.
In total 75% had experienced delivery surcharges, compared to 18% in Scotland as a whole.
While island residents appreciate universal service and the dedication of local postal workers - for whom there was "strong appreciation" - delays and inconsistent delivery speeds cause significant frustration and make it difficult to plan.
For many parcels, delivery involves a handover from national carriers to local couriers or hauliers. Consumers are often unclear who is responsible when items are delayed, lost, or damaged.
Reduced opening hours for post offices, closures, and franchising changes make it difficult for some communities to access essential services such as banking and cash withdrawal, and those on smaller isles can face significant travel.
While it was acknowledged that being in a remote or rural location makes delivery more challenging, there was scepticism over things like drone deliveries - which has been trialled in Orkney - because of the practicality of flying in wet and windy weather.
As one small business owner from Shetland said: "They tried to test it and do press interviews in Orkney, but they had to postpone because the drone hadn't made it. If the drone can’t make it to do press interviews, it’s not making it across the sea! The mail is going to end up missing."
Consumer Scotland has recommended a number of improvements, including clearer information on third-party parcel delivery, and transparent parcel surcharges.
In most areas of the country, Royal Mail are subject to postcode-specific Quality of Service targets, but Orkney, Shetland and Na h‑Eileanan an Iar are currently exempt.
Their figures do count toward the national targets for first and second class post that the company has to meet - though it has consistently failed to do so, receiving £37.1m in fines over the past three years.
However, given the small population size - the median population size on Scotland's 94 inhabited islands is 192 - the numbers count almost nothing toward the national average, with the report concluding there is therefore very little incentive to improve services.
Consumer Scotland is calling on Ofcom to rethink the exemption, and said it would be pleased to work with the company and the regulator to "help design an appropriate, tailored QoS islands postcode area target that recognise the operational logistical challenges faced by Royal Mail".
Consumer Scotland director of policy and advocacy Douglas White said: “Postal services are a lifeline for Scotland’s island communities, supporting everything from access to essential goods and health services to enabling local businesses to trade. While people recognise and value the commitment of postal workers, the overall experience is too often inconsistent, expensive and unclear.
“Our research shows that island consumers are frequently paying significantly more for some deliveries or are excluded altogether, which is simply not fair. They also face uncertainty about delivery times and who is responsible when something goes wrong.
“Small businesses are at the heart of Scotland’s island economies and play a crucial role in supporting jobs, communities and Scotland’s global reputation for high-quality products.
“Improving the reliability, transparency and fairness of postal services is vital for all consumers and is essential to allow island businesses to thrive and continue contributing to Scotland’s economy.”
A spokesperson for Royal Mail said: "When a flight or ferry is cancelled, mail remains within our network and is moved using the next available service, including alternative routes where possible.
"The length of any delay depends on when transport links resume and capacity becomes available.
"Cancellations can happen at short notice and may affect individual routes differently, which means it is not always possible to give customers advance notice of every disruption."