Ofcom lowered Royal Mail’s delivery targets in April, but the results show that these weren’t met. Performance targets for First Class delivery were dropped from 93% to 90% and for Second Class from 98.5% to 95%.

The most recent figures found that 75.9% of First Class mail was delivered the next working day and 89.3% of Second Class mail was delivered on time. Royal Mail hasn’t met any of its annual delivery targets for the last six years.

Despite this, Royal Mail recently announced plans to increase wholesale postage rates by 25% on average. For publishers using the bulk mail streams affected, this increase in cost is at total odds with the quality of service their businesses and customers have been receiving.

The price control set by Ofcom for Second Class mail is due to expire in Spring 2027. And last year, Ofcom announced they are considering allowing Royal Mail to gain greater pricing flexibility on Second Class mail.

Historically, this flexibility has only existed for First Class mail, which is reflected in the disparity between stamp increases over the last six years. First Class stamps have increased in cost by 137% and Second Class stamps by 40%.

The PPA has advocated against all price increases to the Government and Ofcom, stressing that increases should be tied to performance to be justifiable.

Royal Mail state they are taking targeted action to improve reliability. Currently, they are piloting reform to the Universal Service Obligation (USO), following extensive negotiations with their union, the Communication Workers Union (CWU).

Under the reforms, Second Class letters, which includes Bulk Mail, are now delivered on alternate weekdays (Monday-Friday) while First Class letters and all parcels continue six-day delivery. Royal Mail says the nationwide roll out will take time and they need until next Spring before they can meet delivery targets.

The PPA will continue to lobby and Ofcom and the Government in the best interests of our members. If you have any questions, please contact the PPA’s Policy & Public Affairs Officer, charlotte.jeffreys@ppa.co.uk