Why the Change?
Letter volumes have declined sharply, from 20 billion a year at their peak to just 6.7 billion. Projections suggest this could fall further to 4 billion by 2028. Meanwhile, the number of addresses Royal Mail delivers to has grown by four million over the last 20 years. This combination of lower volume and wider coverage has pushed costs up, contributing to a £348 million operating loss in 2023/24.
Countries like Germany, France, Canada, and New Zealand have already adapted their postal services. Now, Royal Mail argues similar changes are needed in the UK to ensure the service remains efficient and sustainable.