Royal Mail halts DM26 rollout but Xmas ‘still in doubt’

Royal Mail has caved in to demands to halt the full rollout of its controversial new delivery model – the so-called Delivery Model 26 (DM26) – until at least January following a major backlash, although whether it will be enough to “save Christmas” remains to be seen.

The decision, which follows top-level talks ordered by Royal Mail owner Daniel Kretinsky, follows an intervention by Prime Minister Andy Burnham, union demands and growing fears among direct mail and online shopping clients that the current crisis could scupper Black Friday and even Christmas campaigns.

The move suspends the final phase of the company’s second-class postal overhaul, which had been on track for completion across all 1,200 delivery offices by December.

Under the pause, the final 107 delivery hubs waiting to switch to the system will defer implementation until at least January 11 2027. A final batch of 15 local offices already in advanced stages will still transition on November 2.

This temporary freeze still leaves the major restructuring operating in roughly 90% of current delivery hubs for the duration of the winter.

The sweeping reforms, which first began following Universal Service Obligation changes by regulator Ofcom, shift second-class mail to alternate-day delivery and entirely eliminate Saturday second-class services; first-class post and parcels remain unaffected.

While Royal Mail argues the model is vital for long-term financial sustainability, the transition has been marred by operational friction, triggering a sharp rise in staff departures and public backlash over missed medical appointments and delayed legal correspondence.

The pause follows mounting pressure from the Government and union leaders. Late last week, Prime Minister Burnham issued an urgent warning to Royal Mail, declaring service standards “unacceptable” and threatening further regulatory measures if performance metrics did not see an immediate turnaround.

The Communications Workers Union, which initially backed the changes, has actively campaigned for a freeze on new deployments and welcomed the move.

Union bosses pointed to structural issues within offices already using the model, citing reports that posties were suffering under unsustainable workloads. The union also secured commitments from Royal Mail to conduct an independent fatigue study and to convert over 8,000 temporary or part-time staff positions into permanent roles to stabilise struggling sorting offices.

However, the wider business community has expressed profound scepticism, with ecommerce industry groups voicing anxiety over the impending Christmas peak, noting that any operational disruption could prove disastrous for smaller merchants who rely on prompt seasonal deliveries.

One industry source said: “Will this mend the current situation? Unlikely. The damage already appears to have been done. Let’s not forget, Christmas is Royal Mail’s busiest period, but it seems the company can’t even cope with the every day post, let alone the huge festive surge.”

According to its own figures, Royal Mail typically handles around 150 million parcels a week during the festive season, upwards of 11.7 million parcels in a single day. And, while total annual letter volumes have declined to around 6.7 billion a year, seasonal volumes double from late October through early January, with individual peak days seeing roughly 10 million letters and parcels sorted across the network.

MPs are also concerned. Business, Innovation, Science & Trade Committee chair Liam Byrne stated that the postal service remains “far from fixed”.

Royal Mail chief executive Alistair Cochrane has sought to reassure the market, highlighting that first-class next-day delivery performance has improved year-on-year to 85%, although this is still short of the 90% target.

Backing its winter operational plans, the firm confirmed it is deploying 22,000 seasonal workers, 7,500 extra hire vans, and five temporary parcel sorting centres to insulate customers from any fallout during the festive rush.

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