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Letters Sent Through Post At 15 Year Low

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http://www.telegraph.co.uk/news/uknews/royal-mail/8105731/Letters-sent-through-post-at-15-year-low.html

Letters sent through the post have fallen to their lowest level for nearly 15 years, official figures show.

The poor performance helped to push Royal Mail’s letters business into a loss for the first six months of the year.

Royal Mail said the average daily postbag fell to 68million, down from 84million at its peak five years ago.

This was now at levels “last seen in the mid-1990s”, Royal Mail said. In 1995/96 70 million letters were posted daily in the UK.

The performance pushed Royal Mail’s letters business from a £48million profit last year into a £66million loss in the first six months of Royal Mail's financial year.

Overall, group operating profits in the six months to 26 September fell more than two thirds from £184million to £52million.

Royal Mail said its business continued to suffer increased competition from rivals as well as the use of email, websites and social media.

New Royal Mail chief executive Moya Greene warned that mail volumes could fall in the UK to as few as 41million a day by 2015, a fall of 40 per cent.

Ms Greene, who took over as chief executive earlier this year, said the figures showed it was “absolutely vital we step up the pace of modernisation”.

Despite the problems, she insisted that “Royal Mail will not increase first and second class stamp prices” beyond the level allowed by the regulator.

The figures came a month after the Government announced Royal Mail was to be privatised, with 90 per cent of its shares sold privately.

Operating profits at the post office network also more than halved to £20 million in the first half of the year.

It said Post Office revenues were hit by a decline in traditional business, such as benefit payments by the Post Office Account, and lower demand for services including foreign currency.

Ministers are pushing the Postal Services Bill through Parliament to enable private capital to be injected and will take on Royal Mail's £8 billion in pension liabilities.

The network of 12,000 post offices will be kept in state ownership.

The Government said the figures “really bring home the need for the action”.

A spokesman added: “The situation is not sustainable and that is why we are pressing ahead with our plans.”

However the Communication Workers Union which is opposing the plans said the figures were “the strongest argument yet for keeping Royal mail publicly owned and fully integrated”.

Billy Hayes, the head of the CWU, said: “Overall there was a group profit and the quality of service has been maintained - would anyone expect a private company to provide the universal service and good quality of service in this context?”

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Yep. The old Royal Mail business model is dead - or at least zombified. Needs reform. My simple suggestion would be a universal service reduced to cut costs - maybe one delivery per week in rural areas - together with higher-grade services at commercial rates for that which is urgent and has to be on paper.

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Lowest for 15 years? But havn't some people been saying that RM's business is dying because mail volumes have been decreasing year on year? Well it seems that for the past 14 years they havn't.

But the population has been increasing for the last 15 years, so it has probably been decreasing in real terms.

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Yep. The old Royal Mail business model is dead - or at least zombified. Needs reform. My simple suggestion would be a universal service reduced to cut costs - maybe one delivery per week in rural areas - together with higher-grade services at commercial rates for that which is urgent and has to be on paper.

Poste restante? In that maybe they post to a nearby central office or a post office nearby and alert you via some online means.... Means you can instantly sack all of the posties.

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Lowest for 15 years? But havn't some people been saying that RM's business is dying because mail volumes have been decreasing year on year? Well it seems that for the past 14 years they havn't.

Means no such thing.

Could mean they've been declining every year since a peak 14 years ago.

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Poste restante? In that maybe they post to a nearby central office or a post office nearby and alert you via some online means.... Means you can instantly sack all of the posties.

That's another option, and one I'd choose for myself if I had the option (and instantly reject all the junkmail). But I'd still keep the weekly delivery for those who like that kind of thing.

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Poste restante? In that maybe they post to a nearby central office or a post office nearby and alert you via some online means.... Means you can instantly sack all of the posties.

hardly surprising mail started to fall when downstream access started in 2004 , 21 miliion items delivered daily for other firms not included in royal mails traffic figures which only show end to end makes things not look quite so bad.

"Royal Mail had a £157 million operating loss after exceptional items last financial year, 2009-10, on “access” mail – the letters,

packets and parcels collected by its rivals but delivered by Royal Mail. The loss amounted to an average of 2.5p per item for the 6.4

billion pieces of access mail delivered by Royal Mail, and access mail continues to grow. More than one in three of all letters delivered

by Royal Mail is an access item of mail"

do away with downstream access that will be 157m more for royal mail , its share holder the government, & its tax payers instead of lining the coffers of a few private offshore companies

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hardly surprising mail started to fall when downstream access started in 2004 , 21 miliion items delivered daily for other firms not included in royal mails traffic figures which only show end to end makes things not look quite so bad.

"Royal Mail had a £157 million operating loss after exceptional items last financial year, 2009-10, on “access” mail – the letters,

packets and parcels collected by its rivals but delivered by Royal Mail. The loss amounted to an average of 2.5p per item for the 6.4

billion pieces of access mail delivered by Royal Mail, and access mail continues to grow. More than one in three of all letters delivered

by Royal Mail is an access item of mail"

do away with downstream access that will be 157m more for royal mail , its share holder the government, & its tax payers instead of lining the coffers of a few private offshore companies

Or just up the price charged to DSA operator's just as TNT, DHL Global Mail etc etc.

....Like that would happen! I read somewhere DSA prices start at something like 11p per letter, if Royal Mail Letters continue to make losses YoY then Postcomm should do something about it.

In other news, my area has TNT postmen who deliver TNT letters, have done for the last 12 months or so....things are changing.

(They still deliver them mid-morning/noon though! Gone are the days of 8am post)

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hardly surprising mail started to fall when downstream access started in 2004 , 21 miliion items delivered daily for other firms not included in royal mails traffic figures which only show end to end makes things not look quite so bad.

"Royal Mail had a £157 million operating loss after exceptional items last financial year, 2009-10, on “access” mail – the letters,

packets and parcels collected by its rivals but delivered by Royal Mail. The loss amounted to an average of 2.5p per item for the 6.4

billion pieces of access mail delivered by Royal Mail, and access mail continues to grow. More than one in three of all letters delivered

by Royal Mail is an access item of mail"

do away with downstream access that will be 157m more for royal mail , its share holder the government, & its tax payers instead of lining the coffers of a few private offshore companies

I have posted about this before. Royal mail are forced by law to deliver mail for rival companies at a loss.

So what does the government propose as a solution?

You might think it would be to repeal or change that rule. Nope, its sell off royal mail of course.

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I have posted about this before. Royal mail are forced by law to deliver mail for rival companies at a loss.

So what does the government propose as a solution?

You might think it would be to repeal or change that rule. Nope, its sell off royal mail of course.

what has me confused is who would buy a business that is handicapped by the government ,unions & the regulator .yes it has a monopoly but the same monopoly can also be a handicap when you have a universal service , granted the so called £10b pension liability will be taken over by the govenment & also the £26b of assets that is in it , that will help with balacing the government debt could that be the real reason for another privatisation attempt.

but again who would buy it

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15 year low but I bet the executives are getting nicely paid with bonuses.

Ahhh but don't you see? They lost less than the loss target set by the board of directors, so in fact, if viewed in a certain light, actually made money but in a negative way. Thus fat bonus checks are deserved all round. No need to thank me for enlightening you, i am happy to enlighten my less knowledgeable breathren.

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what has me confused is who would buy a business that is handicapped by the government ,unions & the regulator .yes it has a monopoly but the same monopoly can also be a handicap when you have a universal service , granted the so called £10b pension liability will be taken over by the govenment & also the £26b of assets that is in it , that will help with balacing the government debt could that be the real reason for another privatisation attempt.

but again who would buy it

Not me ... <_<

I don't see how they could privatise royal mail as-is. It would at the very least need sweeteners, like excluding a bunch of the more onerous obligations (OTOH the courts may have already done much of that with the recent BT pensions ruling).

What's interesting is that all the politicians want it. Smells like working around a political problem.

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I have noticed that I don't get anywhere near as much junk mail as I used to.

Get onto a charity sucker list.... I get 2-3 pieces of junk mail from them (addressed to somebody else). My dad in his infinite wisdom when he was here sorting the (failed) chippy, also managed to get my address onto the builder, car dealer, injury lawyer, stairlift, adjustable bed, sasaki message chair sucker lists. The junk mail I receive on a daily basis is pretty awesome especially if I work out of town for a few days.

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Nothing to see here the statistic is for letters. It doesn't include letters they have to deliver for private firms or anything classed as oversized or a parcel.

Statistics can always be made to say what you want.

I would remove the requirement for the Royal mail to deliver post from a competitor at a loss, let these competitors pay the first class costs for delivering this mail. Also allow remove the fixed cost universal service or make the competitors work under the same rules.

68 million pieces of mail a day is a lot, it wouldn't take much of a rise for first class to bring Royal mail into profit.

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. The junk mail I receive on a daily basis is pretty awesome especially if I work out of town for a few days.

Stick it in the postbox with Not At This Address stamped on it...

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First came the telegraph, then the telephone, then the fax, then the Internet and email. Quite frankly, I'm surprised the postal service has survived as well as it has.

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What with email, I can't remember the last time I sent or received a personal letter!

I used to like that! :)

All I get now is bills, and spam!

Surely the post makes a good deal on all these internet purchase we never used to have? :huh:

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  • 259 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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