GCA reacts to Ofcom’s Universal Service Obligation (USO) announcement
The Greeting Card Association (GCA) today (Thursday July 10) issued its reaction to Ofcom’s plans to amend Royal Mail’s Universal Service Obligation (USO), introducing major changes to the postal service, with GCA CEO Amanda Fergusson stating: ”Our members know a Royal Mail that isn’t delivering, is a Royal Mail that will hold back Britain”.
Ofcom’s plans include: The requirement for first class letters to be delivered six days a week, but second class letters will not be delivered on Saturdays, and will now be delivered every other working day; new ‘tail of mail’ targets will be introduced – for first class, 99% will have to be delivered within three working days, for second class 99% will have to be delivered within five working days; and a reduction in headline target for first class mail from 93% to 90% delivered next working day, and the headline target for second class mail from 98.5% to 95% delivered within three working days.
Ofcom will now review pricing and affordability – further price changes could be contingent on improvements in quality of service, something the GCA has been campaigning for. Ofcom has also asked Royal Mail to put in place a new stakeholder forum, a move the GCA welcomes.
The GCA’s chief executive Amanda Fergusson said: “Our members know a Royal Mail that isn’t delivering, is a Royal Mail that will hold back Britain.
“That’s why they’ve been vocal in telling us it’s time for the postal service to deliver on its promises and why we’ve been campaigning on their behalf to keep Royal Mail reliable, affordable and national.
“With those principles in mind, we’re pleased today’s announcement notes the concern of GCA members and other stakeholders on the affordability of the universal postal service and first-class letters in particular.
“We believe Ofcom’s decision to review pricing and affordability, is a significant move and welcome their acknowledgement that further price changes could be contingent on improvements in quality of service.
“Our members remain concerned that a reduction in the second-class service, would lead to a reliance on uncapped, unregulated first-class mail that is increasingly unaffordable for businesses and consumers alike.
“Of course, our members are also acutely aware that changes are needed to modernise the postal service and get it back to its best – and they’re eager to play their part.
“That’s also why Ofcom’s recommendation that Royal Mail should establish a new stakeholder forum for concerns about changes to the USO to be heard and acted upon, is such an important step forward.
“Our members will broadly welcome new obligations to ensure all mail, whether first or second class should be delivered against new, tougher ‘tail of mail’ targets of 99% for two- and five-day delivery.
“While our members will naturally be concerned about elements of today’s USO reforms, we share common ground with Ofcom and Royal Mail in making the restoration of trust in the delivery service a key priority.
“With over half of greeting cards currently hand-delivered, we know this represents an important future opportunity for Royal Mail.
“Our members and the GCA are ready to work with Royal Mail to help re-build trust, creating a postal service that’s fit for the future, sustaining the businesses and individuals that rely on it for their livelihoods and connections to those they love.”
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