Royal Mail faces renewed scrutiny as price rises coincide with missing delivery targets in the latest quarter, drawing fire from consumer groups and MPs over ongoing reliability concerns.

MPs and industry observers flag disruption and batch deliveries since Christmas, with Royal Mail in talks with the Communications Workers Union to reform universal service rules.

Citizens Advice notes about 16 million Christmas letters and parcels were delivered late, underscoring perceived declines in service quality.

Royal Mail says costs remain below European averages, and notes recent ownership context as IDS was acquired for 3.6 billion pounds, stressing the need to balance affordability with delivery costs.

Ofcom’s USO reforms set new delivery targets: 90% of first-class within one day and 95% of second-class within three days, effective next month, trimming prior obligations.

Industry voices urge bulk stamp purchases ahead of anticipated price hikes, while noting that stamps remain valid for their postage class after the change.

Ofcom approved scrapping Saturday second-class deliveries and moving to every-other-weekday delivery, a policy trial rolled out across 35 offices as talks with the CWU over universal service reform continue.

IDS owner EP Group, led by Daniel Kretínský, completed a 3.6 billion pound acquisition last year, with the reform and pricing changes unfolding within this broader corporate framework.

The reform push aims to modernize and stabilize the universal service network, with ongoing discussions and a two-week extension before an agreement is reached after lengthy CWU negotiations.

Royal Mail attributes price rises to higher delivery costs amid falling letter volumes, noting the average UK adult spends about 6.50 pounds on stamps annually and letters volume has fallen about 70% over two decades, even as address base grows to 32 million.

Management argues stamps remain cheaper than the European average for both first- and second-class, with long-term price increases spread across six to eight years.

The company reports a steep 70% drop in letter traffic since two decades ago and notes it has not met its annual first-class on-time target since 2019-20.