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Royal Mail given go-ahead to scrap second-class post on Saturdays

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Tom Espiner

Business reporter

Getty Images A Royal Mail post van next to a post box where a postal worker is emptying lettersGetty Images

Royal Mail will start to deliver second-class letters on every other weekday and not on Saturdays to help cut costs, the industry regulator has said.

Ofcom said a reform to postal service was needed as people are sending fewer letters each year, so stamp prices keep rising as the cost of delivering letters goes up.

The changes mean second-class letters will be delivered either on Monday, Wednesday and Friday, or on Tuesday and Thursday, in a two-week cycle.

Royal Mail welcomed the changes, which will take effect on 28 July, but the move was criticised by some consumer and business groups.

Under the current one-price-goes-anywhere Universal Service Obligation (USO), Royal Mail has to deliver post six days a week, from Monday to Saturday, and parcels on five from Monday to Friday.

Ofcom says Royal Mail will have to continue to deliver first-class letters six days a week.

“These changes are in the best interests of consumers and businesses, as urgent reform of the postal service is necessary to give it the best chance of survival,” said Natalie Black, Ofcom’s group director for networks and communications.

However, just changing Royal Mail’s obligations will not improve the service, she said.

“The company now has to play its part and implement this effectively.”

Royal Mail estimates it will take 12 to 18 months to implement the changes across its network.

It has been piloting the changes to delivery since February in 37 of its 1,200 delivery offices, and said it was “keen to move ahead with deployment as soon as possible”.

Ofcom estimates that Royal Mail could save between £250m and £425m a year by making the changes.

Royal Mail’s parent company, International Distribution Services (IDS), said Ofcom’s announcement was “good news for customers across the UK”, and that it would support a “reliable, efficient and financially sustainable Universal Service”.

Martin Seidenberg, IDS chief executive, said the changes reflect the “realities of how customers send and receive mail today”.

Ofcom is also making changes to Royal Mail’s delivery targets.

The company will have to deliver 90% of first-class mail next-day, down from the current target of 93%, while 95% of second-class mail must be delivered within three days, a cut from the current 98.5%.

However, there will be a new target of 99% of mail being delivered no more than two days late to incentivise Royal Mail to cut down on long delays.

Ofcom has fined Royal Mail three times since 2020 for missing delivery targets – £1.5m in 2020, £5.6m in 2023, and £10.5m in 2024.

Consumer group Citizens Advice said Royal Mail had a “woeful track record of failing to meet delivery targets, all the while ramping up postage costs”.

Tom MacInnes, Citizens Advice director of policy, said Ofcom had “missed a major opportunity to bring about meaningful change”.

“Pushing ahead with plans to slash services and relax delivery targets in the name of savings won’t automatically make letter deliveries more reliable or improve standards,” he said.

The UK Greeting Card Association also criticised the move, saying it was “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”.

The Liberal Democrats said Ofcom’s announcement was a “deeply worrying decision that could leave countless people who rely on these deliveries in the lurch”.

“People need to know that their post will arrive on time so they can go about their lives, and this move flies right in the face of that,” said the party’s business spokesperson, Sarah Olney.

The Department of Business and Trade, which oversees Royal Mail, said: “The public expects a well-run postal service, with letters arriving on time across the country without it costing the earth.”

People now use the postal service in a different way, so “it’s right the regulator has looked at this,” it said.

“We now need Royal Mail to work with unions and posties to deliver a service that people expect, and this includes maintaining the principle of one price to send a letter anywhere in the UK,” a spokesperson added.

The number of letters Royal Mail delivers has fallen from a peak of 20 billion in 2004-05 to 6.6 billion in 2023-24.

Since 2008, Royal Mail’s revenues from letters have fallen from £6.9bn to £3.7bn.

However, the price of stamps has continued to rise. Since 2022, Royal Mail has hiked the cost of a first-class stamp from 85p to £1.70.

Despite pushing up prices, in 2023-24, Royal Mail made a loss of £348m.

Alongside the delivery changes, Ofcom also said it had launched a review of pricing and affordability on Thursday, “which will consider concerns that many people and organisations have raised about stamp prices”.

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said the change to less frequent second-class deliveries “will be music to the ears of Royal Mail’s new owner”.

The £3.6bn sale of Royal Mail to Czech billionaire Daniel Kretinsky’s EP Group was cleared by shareholders in April.



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National Trust to cut 550 jobs after Budget pushes up costs

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The National Trust has announced plans to cut 6% of its current workforce, about 550 jobs, partly blaming an inflated pay bill and tax rises introduced by Chancellor Rachel Reeves.

The heritage and conservation charity said it was under “sustained cost pressures beyond our control”.

These include the increase in National Insurance contributions by employers and the National Living Wage rise from April, which the National Trust said had driven up wage costs by more than £10m a year.

The cost-cutting measures are part of a plan to find £26m worth of savings.

“Although demand and support for our work are growing with yearly increases in visitors and donations; increasing costs are outstripping this growth,” the charity said in a statement.

“Pay is the biggest part of our costs, and the recent employer’s National Insurance increase and National Living Wage rise added more than £10m to our annual wage bill.”

A 45-day consultation period with staff began on Thursday and the Trust – which currently has about 9,500 employees – said it was working with the Prospect union “to minimise compulsory redundancies”.

Prospect said though cost pressures were partly to blame, “management decisions” also contributed to the Trust’s financial woes.

The union’s deputy general secretary, Steve Thomas, said “once again it is our member who will have to pay the price”.

“Our members are custodians of the country’s cultural, historic and natural heritage – cuts of this scale risk losing institutional knowledge and skills which are vital to that mission,” he said.

The Trust is running a voluntary redundancy scheme, and is expecting that to significantly reduce compulsory redundancies, a spokeswoman said.

The job cuts will affect all staff from management down, and everyone whose job is at risk will be offered a suitable alternative where available, the spokeswoman added.

Following consultations, which will finish in mid-to-late August, the cuts will be made in the autumn.

Chancellor Rachel Reeves announced the rise in National Insurance contributions by employers in last October’s Budget.

But the move led to strong criticism from many firms, with retailers warning that High Street job losses would be “inevitable” when coupled with other cost increases.

The hike in employer NICs is forecast to raise £25bn in revenues by the end of the parliament.



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GPTBots.ai’s Business AI Agent Solutions at The MarTech Summit Hong Kong

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As enterprises worldwide race to adopt AI, GPTBots.ai made its mark at The MarTech Summit Hong Kong, Asia’s premier marketing technology conference attended by world-renowned brands such as JPMorgan, Yahoo, Nike, and DBS, alongside leading Hong Kong enterprises including Cathay Pacific, Hong Kong Disneyland, and The Hong Kong Jockey Club.

With 85% of enterprises prioritizing AI adoption in 2024 (Gartner), yet struggling with implementation gaps, GPTBots.ai demonstrated how its no-code AI Agent platform turns complex AI concepts into deployable solutions—without coding or data science teams.

Spotlight: Real-World AI in Action
At the summit, GPTBots.ai engaged with forward-thinking organizations, including:
A Top Hong Kong University: Their admissions team explored AI-powered chatbots to streamline student inquiries and application processes, aiming to:

  • Automate 80% of FAQs (e.g., program requirements, deadlines).
  • Guide applicants through form-filling with smart error detection.
  • Free staff to focus on students’ in-depth support.

A Leading Hong Kong Airline: Their tech team discussed internal efficiency AI Agents for:

  • AI search to make enterprise knowledge instantly accessible and empower every role.
  • Reducing IT helpdesk tickets by 50% via self-service troubleshooting.

Why GPTBots.ai Stood Out

  • Enterprise-Ready: Built to adapt to your business, no matter the size or complexity.
  • Proven at Scale: Powers AI Agents for financial services, healthcare, and retail giants.
  • End-to-End Capabilities: From strategy to deployment, we manage every step of your AI journey.

“The gap isn’t AI potential—it’s practical adoption,” said Tanya Quan, Marketing Director at GPTBots.ai. “We’re helping enterprises skip the lab and go straight to ROI.”

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Misinformation was a problem during the Texas floods. AI chatbots weren’t always helping

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When deadly flash floods hit central Texas last week, people on social media site X turned to artificial intelligence chatbot Grok for answers about whom to blame.

Grok confidently pointed to President Trump.

“Yes. Trump’s 2025 cuts slashed NOAA/NWS funding by ~30% and staff by 17%, impairing forecast accuracy. Warnings underestimated rainfall, contributing to inadequate alerts for the flash floods that killed 24 and left ~24 Camp Mystic girls missing, presumed dead in ongoing searches,” Grok said in a post on Saturday before the death toll rose to at least 120.

Facing backlash from X users that it jumped to conclusions and was “woke,” the chatbot then backtracked.

“That screenshot is a fabrication—I never posted it. Actual facts: Trump’s 2025 NOAA cuts reduced funding ~30% and staff 17%, raising concerns (Axios, Fox). Texas floods killed 43+, with warnings issued hours ahead (CNN), but rainfall underestimated. No evidence directly ties cuts to deaths yet; investigation ongoing. Truth matters,” Grok said in another post.

The contradictory remarks show how AI chatbots can sometimes offer straightforward but inaccurate answers, adding confusion to online chatter already filled with falsehoods and conspiracy theories.

Later in the week, Grok had more problems. The chatbot posted antisemitic remarks and praised Adolf Hitler, prompting xAI to remove the offensive posts. Company owner Elon Musk said on X that the chatbot was “too eager to please and be manipulated,” an issue that would be addressed.

Grok isn’t the only chatbot that has made inappropriate and inaccurate statements. Last year, Google’s chatbot Gemini created images showing people of color in German military uniforms from World War II, which wasn’t common at the time. The search giant paused Gemini’s ability to generate images of people, noting that it resulted in some “inaccuracies.” OpenAI’s ChatGPT has also generated fake court cases, resulting in lawyers getting fined.

The trouble chatbots sometimes have with the truth is a growing concern as more people are using them to find information, ask questions about current events and help debunk misinformation. Roughly 7% of Americans use AI chatbots and interfaces for news each week. That number is higher — around 15% — for people under 25 years old, according to a June report from the Reuters Institute. Grok is available on a mobile app but people can also ask the AI chatbot questions on social media site X, formerly Twitter.

As the popularity of these AI-powered tools increase, misinformation experts say people should be wary about what chatbots say.

“It’s not an arbiter of truth. It’s just a prediction algorithm. For some things like this question about who’s to blame for Texas floods, that’s a complex question and there’s a lot of subjective judgment,” said Darren Linvill, a professor and co-director of the Watt Family Innovation Center Media Forensics Hub at Clemson University.

Republicans and Democrats have debated whether job cuts in the federal government contributed to the tragedy.

Chatbots are retrieving information available online and give answers even if they aren’t correct, he said. If the data they’re trained on are incomplete or biased, the AI model can provide responses that make no sense or are false in what’s known as “hallucinations.”

NewsGuard, which conducts a monthly audit of 11 generative AI tools, found that 40% of the chatbots’ responses in June included false information or a non-response, some in connection with some breaking news such as the Israel-Iran war and the shooting of two lawmakers in Minnesota.

“AI systems can become unintentional amplifiers of false information when reliable data is drowned out by repetition and virality, especially during fast-moving events when false claims spread widely,” the report said.

During the immigration sweeps conducted by the U.S. Immigration and Customs Enforcement in Los Angeles last month, Grok incorrectly fact-checked posts.

After California Gov. Gavin Newsom, politicians and others shared a photo of National Guard members sleeping on the floor of a federal building in Los Angeles, Grok falsely said the images were from Afghanistan in 2021.

The phrasing or timing of a question might yield different answers from various chatbots.

When Grok’s biggest competitor, ChatGPT, was asked a yes or no question about whether Trump’s staffing cuts led to the deaths in the Texas floods on Wednesday, the AI chatbot had a different answer. “no — that claim doesn’t hold up under scrutiny,” ChatGPT responded, citing posts from PolitiFact and the Associated Press.

While all types of AI can hallucinate, some misinformation experts said they are more concerned about Grok, a chatbot created by Musk’s AI company xAI. The chatbot is available on X, where people ask questions about breaking news events.

“Grok is the most disturbing one to me, because so much of its knowledge base was built on tweets,” said Alex Mahadevan, director of MediaWise, Poynter’s digital media literacy project. “And it is controlled and admittedly manipulated by someone who, in the past, has spread misinformation and conspiracy theories.”

In May, Grok started repeating claims of “white genocide” in South Africa, a conspiracy theory that Musk and Trump have amplified. The AI company behind Grok then posted that an “unauthorized modification” was made to the chatbot that directed it to provide a specific response on a political topic.

xAI, which also owns X, didn’t respond to a request for comment. The company released a new version of Grok this week, which Musk said will also be integrated into Tesla vehicles.

Chatbots are usually correct when they fact-check. Grok has debunked false claims about the Texas floods including a conspiracy theory that cloud seeding — a process that involves introducing particles into clouds to increase precipitation — from El Segundo-based company Rainmaker Technology Corp. caused the deadly Texas floods.

Experts say AI chatbots also have the potential to help people reduce people’s beliefs in conspiracy theories, but they might also reinforce what people want to hear.

While people want to save time by reading summaries provided by AI, people should ask chatbots to cite their sources and click on the links they provide to verify the accuracy of their responses, misinformation experts said.

And it’s important for people to not treat chatbots “as some sort of God in the machine, to understand that it’s just a technology like any other,” Linvill said.

“After that, it’s about teaching the next generation a whole new set of media literacy skills.”



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