Royal Mail is planning to scrap Saturday letter deliveries and signed-for parcels under a major shake-up of services.
Any decision to scrap Saturday letter deliveries and signed-for parcels would need changes to the law, as the company is currently required to deliver letters for a fixed price, six days per week, under a universal service obligation (USO).
The review comes as it seeks to modernise and push through big cost savings by changing its ‘whole product offering’, reports Mail Online.
Simon Thompson, the postal service’s new UK boss, is looking at the changes as part of a six-month review to focus on parcels industry.
With letter volumes in decline, bosses argue this requirement is outdated and leaves Royal Mail at a disadvantage versus rivals such as DHL and Amazon.
Despite this, Royal Mail bosses are said to want to scrap tracked, signed-for parcels because they are expensive to deliver, with many customers happy for packages to be left in a safe place if they are not home, according to the Daily Telegraph.
Ofcom, the communications regulator, has already backed the proposal to scrap Saturday letter deliveries in principle.
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It said consumer needs could still be met following the change, which could save Royal Mail between £125million and £225million.
Ofcom said the decision on changing the USO was ultimately up to MPs.
But the Communication Workers Union, which fears job cuts if services are trimmed, has previously said reducing letter deliveries would be ‘unforgivable’.
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