Royal Mail plea to axe price promise

THE boss of Royal Mail has pleaded for an overhaul of 180-year-old laws requiring it to deliver post anywhere in the UK for the same price.

Chairman Keith Williams said the postal service is battling for survival and the decline in letters being sent has accelerated during the coronavirus crisis.

He believes this makes it impossible to be viable without looking again at its socalled Universal Service Obligation. The rules legally require Royal Mail to deliver post to any address in the country for the same price from Monday to Saturday.

They have been in place since the Penny Black – the world’s first postage stamp – was launched in 1840.

Royal Mail, which yesterday announced plans to slash around 2,000 management jobs – said it has become increasingly unprofitable. It has also allowed rivals such as DHL and Hermes to become more dominant in the parcels business.

In an open letter to ministers, Mr Williams, 64, revealed the postal service was losing £1million a day and letter volumes had slumped by a third during the lockdown. He said it was ‘impossible to achieve sustainability without looking at our Universal Service Obligation’.

But James Daley, of consumer campaign group Fairer Finance, said: ‘ It keeps every corner of Britain connected and is a lifeline for many rural communities. It would be an absolute travesty if it was axed.’

Royal Mail must provide the service until at least next year. Ofcom said it is under review.