ROYAL Mail will not be allowed to scrap Saturday post deliveries, Downing Street has vowed.
Number 10 said the Government “would not countenance” ending the six-days a week service after speculation swirled over the weekend about possible cuts.
AlamyOver recent years Royal Mail has been rocked by a wave of industrial disputes and its performance has increasingly come under scrutiny[/caption]
Postal regulator Ofcom is set to publish documents on Wednesday, outlining how the courier may need updating and “evolve to more closely meet consumer needs”.
The regulator said it would not comment on the proposals but Sky News reported it is expected to include the abolition of Saturday deliveries.
It comes amid warnings from Royal Mail’s chief executive the 500-year-old firm may need a Government subsidy to remain afloat.
Royal Mail was privatised by the coalition government in 2013.
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Over recent years it has been rocked by a wave of industrial disputes and its performance has increasingly come under scrutiny.
In November, it was fined £5.6m by Ofcom for failing to meet first- and second-class delivery targets during the 2022-23 financial year.
It also reported half-year losses of £319 million in November.
While the potential scrapping of Saturday post is not the only option considered, Martin Seidenberg, the boss of Royal Mail’s owner International Distributions Services, warned MPs in a letter last week: “Delivering the current Universal Service requirements – in a financially sustainable way – is increasingly difficult, if not impossible, to achieve as the mix and number of parcels and letters changes.
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“The bar set by the regulations is unrealistic given the market realities.”
He said there were several ways to address the challenges facing Royal Mail, including “significantly increasing prices, seeking a government subsidy, and/or reforming the Universal Service so that it is more reflective of the customer needs and market realities of today, not the needs of the past”.
The Ofcom document due on Wednesday will not contain conclusions or formal recommendations and any changes to Royal Mail’s universal service obligation (USO) recommended by the regulator would require a vote from MPs.
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