Anyone read the telegraph?

[jbo5066]

On my phone's newsfeed, The Telegraph have reported the government have said no again today to a reduction in the USO .. can't post article since it has a paywall...

[Basildon Bond]

https://www.telegraph.co.uk/business/20 ... n-blocked/

Government rejects Royal Mail plans to axe Saturday deliveries

The decision is likely to prompt a big price jump for first class stamps

By Oliver Gill, Chief Business Correspondent 8 June 2023 • 11:22am

IMAGE: Royal Mail was hoping to save up to £225m a year by reducing its service

Royal Mail’s plans to axe Saturday letter deliveries has been blocked by the Government, in a move that could lead to a huge rise in the price of first class stamps.

Business minister Kevin Hollinrake today confirmed that ministers would not bow to the demands of the former FTSE 100 company, which has argued its business is unsustainable unless it is allowed to drop its six-day-a-week delivery obligation.

Mr Hollinrake said in a letter to the Business Select Committee: “The ability to send and receive letters and parcels is important both socially and economically. This is particularly true for consumers who might be more vulnerable.”

Royal Mail has been lobbying ministers to switch from a six to five-days-a-week letter service. It argues that customers no longer value Saturday postal rounds amid falling letter volumes.

It comes as Royal Mail tries to transform itself from a letters-led to a parcel-led postal service. Downgrading letters and upgrading parcel deliveries to seven-days-a-week is a core plank of plans to return UK operations to profitability.

The switch would require MPs to vote through a change in postal laws.

Regulator Ofcom has estimated that cutting Saturday letter deliveries would save Royal Mail up to £225m per year.

Royal Mail’s chairman Keith Williams warned in December that “considerable” increases in the cost of a first class stamp would be needed to balance the books if it has to continue with a six-day letter delivery service.

He said: “You’re delivering the same number of letters over six days when you could be doing it over five. So that is forcing up stamp prices.”

Royal Mail chairman Keith Williams has argued that six-day deliveries are unsustainable for the business

IMAGE: Royal Mail’s Keith Williams has argued that a six-day delivery schedule is unsustainable Credit: Royal Mail

Second class stamps are more heavily regulated than first-class equivalents, giving Royal Mail less scope for price increases.

The cost of a first class stamp rose to more than £1 for the first time in Royal Mail’s 500-year history in March. A price rise from 95p to £1.10 was implemented in April – a 16pc increase, well ahead of inflation.

The Government decision follows reports by the Telegraph of the emergence of “postal deserts” up and down Britain as a year-long industrial dispute – and associated rock bottom morale among workers – takes its toll of operations.

Last month Ofcom launched an investigation after Royal Mail unveiled its worst performance on record. Just 74pc of first class deliveries were completed on time in the year to March 2023 – well below its target of 93pc and the worst performance since it began collecting data in 2007.

Although the Royal Mail board has now struck a pay deal with leaders of the 115,000-member Communication Workers Union, a ballot of postal workers is yet to be completed.

Royal Mail chief executive Simon Thompson stepped down in May after little more than two years in the job. Mr Thompson regularly clashed with union leaders during a bitter industrial campaign that led to the worst wave of strike action in decades.

[jbo5066]

Thank you

[koolishy67]

I don't know why Royal mail keep requesting government won't allow atleast till election

[spen]

Who they trying to kid, ditch 6 day a week uso,,, there's rounds in our d.o lucky to go out once a week

[dazzler123]

who were these customers who said they dont need saturday mail? i dont recall being asked if im happy having my mail undelivered. Or was it just a made up lie by the Royal Mail board to suit themselves?

[richietns]

Keith Williams “You’re delivering the same number of letters over six days when you could be doing it over five. So that is forcing up stamp prices.”

What he really means,we could get rid of another load of staff with no dutys going out on Saturdays.

[stevejm]

Lets face it - there is no need for a letter delivery on a Saturday - what is there that couldn't wait until the Monday or be posted a few days earlier to make sure it arrives before the Saturday?

In my opinion, the government's excuse about vulnerable people seems to be without validity - unless someone can enlighten me.

The real reason is that the government is smart enough to realise that there'd be thousands of job losses and that will cost them more votes than IDS struggling financially

[norris9]

Royal Mail has been lobbying ministers to switch from a six to five-days-a-week letter service. It argues that customers no longer value Saturday postal rounds amid falling letter volumes.

Saturday's used to be ridiculously light 2 years ago..... these days they aren't as light as they used to be. Saturday mail has gone up, in our office at least.

A 6 day letters service is pointless these days. Most of what we deliver is junk mail.

I am curious to know how much money Royal Mail make from junk mail each year. How much do these companies pay for sending out marketing materials in bulk? I doubt they are paying £1.10 per 1st class piece of junk mail....

If this junk mail doesn't make Royal Mail much money, then they need to charge higher prices to these businesses spamming the country with these letters.

[chickenwittle]

Lets face it - there is no need for a letter delivery on a Saturday - what is there that couldn't wait until the Monday or be posted a few days earlier to make sure it arrives before the Saturday?

In my opinion, the government's excuse about vulnerable people seems to be without validity - unless someone can enlighten me.

The real reason is that the government is smart enough to realise that there'd be thousands of job losses and that will cost them more votes than IDS struggling financially

Would there be that many job loses when it seems nearly every office is understaffed already ?

[broughts]

During covid when Saturday letters were stopped my Dom told us he’s never saved so much times that by the whole country and RM had a taster of what they could save in wages etc

[Rommagic]

During covid when Saturday letters were stopped my Dom told us he’s never saved so much times that by the whole country and RM had a taster of what they could save in wages etc

But the walks bigger now.

[stevejm]

answer to chickenwittle - >>>>>>>>>>>>> it used to be said that there'd be a cull of reserves/part timers but now the majority would probably just be offered full time - so probably no

[TopperGas]

Lets face it - there is no need for a letter delivery on a Saturday - what is there that couldn't wait until the Monday or be posted a few days earlier to make sure it arrives before the Saturday?

In my opinion, the government's excuse about vulnerable people seems to be without validity - unless someone can enlighten me.

The real reason is that the government is smart enough to realise that there'd be thousands of job losses and that will cost them more votes than IDS struggling financially

You could argue that for any day of the week and suggest a 3 day service was sufficient? If we went down that path where do you think any savings would go, to the staff, ploughed back into the business or just passed to shareholders as dividends?

[stevejm]

just because one day gets knocked off doesn't automatically mean that others would be - not in the short-term.

By 2030/2035 who knows what the letter decline will look like or if this company will even exist then