Importance of postal services recognised

​A consultation document issued by the regulator, Ofcom, makes no mention of measures which the Royal Mail had initially sought, like centralised delivery centres for sparsely populated areas, or any departure from the “postage stamp principle” of the same cost applying across the UK.

As for the rest of the country, the consultation proposes reductions in the Royal Mail’s obligations on Second Class postal deliveries, with these restricted to every second day with none on Saturdays.

The consultation proposes that six day delivery of First Class mail and parcels will continue.

The Ofcom document states that unless some conditions are relaxed, “there is a material risk of the Universal Service becoming financially unsustainable, and we estimate that the USO already represents a financial burden to Royal Mail”.

The report notes: “Our research found that users in rural and remote areas consider the existence of postal services important in addressing feelings of isolation…. Users in the Highlands and Islands were more likely than average to agree they would feel cut off from society if they could not send or receive post”.

It continues: “Our most recent residential tracking survey shows that uniform pricing remains a valued feature with 82 per cent of people saying the same price to send anywhere within the UK is an important factor when sending letters.

"SMEs also value uniform pricing, with 81 per cent saying this was an important factor in choosing a provider to send letters”.

The consultation document says: “Under the proposed delivery structure there would be days where Second Class letters are not being delivered but First Class letters still need to be delivered.

"First Class letters would therefore need to be delivered alongside parcels which would also be delivered six days per week”.