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Teaching activity

Royal Mail Proposes Reduced Letter Deliveries: A-Level Business in the News

Mike Mills

29th January 2024

Have a go at this teaching activity, which includes a downloadable worksheet and suggested answers.

What's the story?

Royal Mail could be allowed to reduce letter delivery to just 3 days per week under proposals by regulator Ofcom. This is aimed at helping Royal Mail run a sustainable service amid declining letter volumes and rising costs.

Ofcom stressed the need for change but said there would be no impact on delivery targets. Options include moving letters to a 3-day service, with next day still available for urgent mail.

Reducing delivery days from 6 to 5 or even just 3 would require legislative change.

The proposals have met strong opposition from the Communication Workers Union, who warn of tens of thousands of potential job losses. Union says Ofcom has no credibility and views are an irrelevance to the discussion.

Government also seems unlikely to support relaxing the 6-day delivery commitment.

Royal Mail has argued since 2020 that universal service obligation needs reform to reflect collapsing letter volumes. Most likely change is scrapping Saturday deliveries - Ofcom data shows reliability prioritised over weekend service.

Royal Mail proposes reduced letter deliveries

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Mike Mills

Mike is an experienced Head of Department, teacher and A-level Business examiner. Mike is also a popular presenter on tutor2u CPD courses and student workshops.

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