Thousands of DPD couriers are facing substantial earnings losses after the delivery firm announced a 65p cut per delivery, amounting to up to £25 per driver per day. The company, which reported pre-tax profits of nearly £200m, initially informed drivers of the reduction in an email on 29 September, sparking a walkout by about 1,500 drivers on Tuesday.
Following a meeting with drivers' representatives, managers agreed to defer the cuts until after Christmas, with the new rates set to take effect on 5 January 2026. However, the deferment does little to alleviate the long-term impact, with drivers estimating annual losses of more than £6,000 each, and up to £8,000 for those working extra deliveries over the festive period.
Drivers, most of whom are self-employed, expressed deep concern over the cuts. One driver described the reduction as 'pretty much my childcare costs for the year,' while a spokesperson highlighted the lack of holiday or sick pay, stating that even before the cuts, drivers had to work 50-hour weeks just to get by. 'We've not had a holiday for the last four years,' he added, noting that the cost of living crisis has exacerbated their struggles.
The cuts apply to both owner-driver franchise (ODF) drivers, who are paid directly by DPD, and multi-route franchise (MRF) operators, who manage fleets. MRF operators may be forced to pass on the cuts to their drivers, potentially wiping out their profits. Meanwhile, DPD's highest-earning director received nearly £1.5m in 2024, including bonuses, a rise of over £90,000 on the previous year.
DPD confirmed the deferment but did not provide further details on the agreement. Drivers' representatives noted that the company had also scrapped a £500 Christmas bonus, adding to the financial strain. The cuts are expected to have a 'huge effect on Christmas this year' for many drivers and their families.
