Royal Mail outlines £500m investment to hit postal delivery targets

(Sharecast News) - Royal Mail is investing �500m as it overhauling its services in an attempt to meet new postal targets for next year, which include plans to reduce the frequency of second class deliveries.

Following an agreement with the Communication Workers Union, Royal Mail said it would rollout a new delivery model from May, subject to consultations with CWU members, to cut down on delays.

Under the proposals, second class and other non-first class post will now be delivered every other weekend, with no second-class post delivered on Saturdays.

Ofcom's new targets from May 2027 stipulate that 85% of first class post should delivered the next day within nine months of the reforms being brought in, rising to 90% within 12 months of deployment. Meanwhile, 93% of second class deliveries should be delivered within three days after nine months of deployment, rising to 95% within 12 months.

Royal Mail said its plans should see 90% of first class letters delivered the next day, and 99% within three working days; 95% of second class letters will be delivered within three days, and 99% within five working days.

Royal Mail, owned by International Distribution Services, said the �500m investment would be funded by savings from Universal Service changes, and including around 6,000 part-time posties "having the opportunity to increase their average weekly hours".

"We recognise our service hasn't always been the standard our customers rightly expect and we're determined to do better," said Royal Mail chief executive Alistair Cochrane.

"The plan we've set out today shows how we'll make a step change in performance across the UK, backed by �500 million of investment over the next five years."