Royal Mail has announced a £500 million investment plan to address persistent late deliveries, which includes reducing second-class post to every other weekday and scrapping Saturday deliveries from next month. The changes, piloted since July, will be rolled out nationwide in May following a deal with the Communication Workers Union (CWU) and Unite that ended a dispute over the overhaul.
The courier promised to meet new delivery targets set by Ofcom by next May, after being fined a record £21 million in October for missing targets. In 2024-25, Royal Mail delivered only 77% of first-class post and 92.5% of second-class post on time. The new targets, effective from 1 April, lower the first-class next-day target from 93% to 90% and the second-class three-day target from 98.5% to 95%, with a new enforceable backstop requiring 99% of mail to be delivered no more than two days late.
The investment includes allowing 6,000 part-time postal workers to increase their average weekly hours if needed, funded by savings from service changes. Stamp prices recently rose to £1.80 for first-class and 91p for second-class, despite criticism from Citizens Advice. Royal Mail blamed stormy weather and staff sickness for recent missed deliveries.
CWU general secretary Dave Ward welcomed the plan but stressed the need for proper resourcing and worker input, criticising Royal Mail's top-down management and prioritisation of finance over quality. He called on the government to hold the company accountable, noting its poor track record on promises.
Royal Mail expects to improve first-class next-day delivery to about 85% within nine months of the changes, reaching the 90% target within a year. For second-class, it aims for 93% delivery within three days in nine months, hitting the 95% target by May next year. Chief executive Alistair Cochrane said the plans would lead to a 'step change' in performance, acknowledging that service has not always met customer expectations.
The shake-up comes a year after Czech billionaire Daniel Křetínský's EP Group completed a £3.6 billion takeover of Royal Mail's parent company, International Distribution Services.
