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Ofcom will next week outline options for reforming Royal Mail’s service obligations that could pave the way for the abolition of Saturday postal deliveries amid warnings from the company’s boss that it may require a government subsidy to survive.

Sky News has learnt that the regulator will on Wednesday publish a consultation paper on the future of the Universal Service Obligation (USO) which industry sources believe is likely to include reforms such as modifying first- and second-class delivery targets; following European markets such as Germany and Italy in moving to alternate-day deliveries; providing a state subsidy to support the USO; and allowing Royal Mail to impose higher stamp prices.

Amending the current six-day USO – which obliges Royal Mail to deliver to every UK address six days a week for the price of a stamp – to a five-day structure that would then lead to the long-standing system of Saturday deliveries being scrapped is also understood to be among the options that will be presented in the Ofcom paper.

However, axeing the USO altogether, as Denmark has done recently, is unlikely to be a realistic option that would gain support from ministers.

Royal Mail has pleaded for urgent changes to its regulatory framework, arguing that a system built for 20 billion letter deliveries a year is now managing only seven billion, with the number set to decline to as few as four billion within five years, based on current trends.

This weekend, industry sources pointed out that the Ofcom document would not contain conclusions or firm recommendations, but would instead set out ideas for preserving the universal postal service in a sustainable form.

A 90-day call for input is expected to follow, with formal proposals expected to be set out later this year.

The regulator said last September that it intended to publish a paper focused on reforming the USO, saying that it had been unchanged since 2011.

“However, consumer demand for postal services has changed substantially, and it continues to do so,” it said.

Scrapping Saturday deliveries and moving to a five-day USO would require parliamentary approval.

Last year, the government rejected a request from Royal Mail to move to weekday-only deliveries, with estimates suggesting that this would save the company hundreds of millions of pounds a year.

“We currently have no plans to change the minimum requirements of the universal postal service as set out in the Postal Services Act 2011… including six-day letter deliveries,” Kevin Hollinrake, the business minister, said last June.

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Since its privatisation by the coalition government in 2013, the company has endured a series of industrial disputes and parted company with a succession of controversial chief executives.

Its recent delivery performance has been lambasted by MPs, and in November it was fined £5.6m by Ofcom for failing to meet first- and second-class delivery targets during the 2022-23 financial year.

Under the current USO, Royal Mail is expected to deliver 93% of first-class mail within one working day of collection, and 98.5% of second-class mail within three working days of collection.

Ofcom said in November that the company had “breached its obligations by failing to meet its targets by a significant and unexplained margin”.

“This caused considerable harm to customers, and Royal Mail took insufficient steps to try and prevent this failure,” the watchdog added.

In a letter to MPs this week, Martin Seidenberg, chief executive of Royal Mail’s parent company, International Distributions Services (IDS), wrote: “Delivering the current Universal Service requirements – in a financially sustainable way – is increasingly difficult, if not impossible, to achieve as the mix and number of parcels and letters changes.

“The bar set by the regulations is unrealistic given the market realities.”

He said there were several ways to address the challenge facing Royal Mail, “including significantly increasing prices, seeking a government subsidy, and/or reforming the Universal Service so that it is more reflective of the customer needs and market realities of today, not the needs of the past”.

“Whilst we welcome the forthcoming Ofcom review of the Universal Service, the inertia we have experienced means that we are now facing a far more serious situation than we would have been if action had been taken sooner,” Mr Seidenberg wrote.

“Every day that Ofcom and the Government further delay reform just creates more risk for the long-term sustainability of the Universal Service, and indeed Royal Mail itself. We must maximise every pound spent to transform our business for the future and deliver more for our customers – not continue to sustain a service standard that was designed in a pre-internet era and no longer reflects customer needs.”

On Thursday, the company reported that it had had its best Christmas trading period for four years, with a 10% rise in revenues during the final quarter of the year.

Ofcom and IDS both declined to comment on Saturday.

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Man and boy arrested on suspicion of arson after restaurant fire leaves two in critical condition

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Man and boy arrested on suspicion of arson after restaurant fire leaves two in critical condition

A 54-year-old man and a 15-year-old boy have been arrested on suspicion of arson with intent to endanger life after a restaurant fire in east London on Friday.

Three people were taken to hospital in a life-threatening condition after the fire at the Indian Aroma in Ilford.

Two remained in a critical condition on Sunday morning, according to the Metropolitan Police.

The restaurant suffered extensive damage in the blaze.

Two further victims are thought to have left the scene before officers arrived, Scotland Yard said.

Woodford Avenue from above. Pic: UK News and Pictures
Image:
Woodford Avenue from above. Pic: UK News and Pictures

Police are still trying to identify them.

CCTV footage seen by the PA news agency appears to show a group of people wearing face coverings walk into the restaurant and pour liquid on the floor.

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Seconds later, the inside of the restaurant is engulfed in flames.

“While we have made two arrests, our investigation continues at pace so we can piece together what happened on Friday evening,” said the Met Police’s DCI Mark Rogers.

“I know the community [is] concerned and shocked by this incident.

The moment the fire broke out.
Image:
The moment the fire broke out.

“I would urge anyone with any information or concerns to come forward and speak to police.”

Hospital porter Edward Thawe went to help after hearing screams from his nearby home.

He described the scene as “horrible” and “more than scary and the sort of thing that you don’t want to look at twice.”

He said: “I heard screaming and people saying they had called the police.”

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The 43-year-old said he saw a woman and a severely burned man who may have been customers.

Another witness, who did not want to be named, said he saw three “severely burned” people being doused by the emergency services and given oxygen.

“I can only imagine the pain they were going through,” he said.

On Saturday, the London Ambulance Service told Sky News: “We sent resources to the scene, including ambulance crews, an advanced paramedic, an incident response officer and paramedics from our hazardous area response team.

“We treated five people for burns and smoke inhalation. We took two patients to a major trauma centre and three others to local hospitals.”

The police investigation is continuing.

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Fast-track asylum appeals process to be introduced – as average time for decisions is more than one year

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Fast-track asylum appeals process to be introduced - as average time for decisions is more than one year

A new fast-track asylum appeals process will be introduced to speed up the process of deporting people without a right to remain in the UK, the home secretary has said.

As it currently takes, on average, more than a year to reach a decision on asylum appeals, the government plans to set up a new independent panel focused on asylum appeals to help reduce the backlog.

Home Secretary Yvette Cooper said “completely unacceptable” delays in the appeals process left failed asylum seekers in the system for years.

There are about 51,000 asylum appeals waiting to be heard.

The new independent body will use professionally-trained adjudicators, rather than relying on judges.

Ministers are introducing a new 24-week deadline for the first-tier tribunal to determine asylum appeals by those receiving accommodation support and appeals by foreign offenders.

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Police clash with protesters in Bristol

But they believe the current tribunal system, which covers a wide range of different cases, is still failing to ensure failed asylum seekers can be returned as swiftly as possible, nor can it accommodate a fast-track system for safe countries.

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It comes amid protests about the use of hotel accommodation for migrants.

The home secretary said the overhaul would result in a system which is “swift, fair and independent, with high standards in place”.

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She said: “We inherited an asylum system in complete chaos with a soaring backlog of asylum cases and a broken appeals system with thousands of people in the system for years on end.

“That is why we are taking practical steps to fix the foundations and restore control and order to the system.

“We are determined to substantially reduce the number of people in the asylum system as part of our plan to end asylum hotels.

“Already since the election, we have reduced the backlog of people waiting for initial decisions by 24% and increased failed asylum returns by 30%.

“But we cannot carry on with these completely unacceptable delays in appeals as a result of the system we have inherited which mean that failed asylum seekers stay in the system for years on end at huge cost to the taxpayer.”

Official figures released earlier this month showed a total of 111,084 people applied for asylum in the UK in the year to June 2025, the highest number for any 12-month period since current records began in 2001.

‘Waving immigrants through even faster will not fix the problem’

Chris Philp, the shadow home secretary, said: “I think this goes nowhere near far enough.

“The underlying rights, which allows most illegal immigrants to stay here, are not changing. Simply waving illegal immigrants through even faster to full housing and welfare rights will not fix the problem.”

Chris Philp
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Chris Philp

He added: “Immigration judges will still apply ever expanding common-sense defying definitions of ECHR rights to allow foreign criminals and illegal immigrants to stay here.”

But the Liberal Democrats have been more positive in their response, with shadow attorney general, Ben Maguire, saying: “A faster application process would mean that those with no right to be here are sent back swiftly and those who do have a valid claim can get a job, integrate and contribute to the community.”

Asked for his thoughts on the policy, immigration lawyer Harjap Singh Bhangal told Sky News that it “definitely sounds like some sort of solution”.

He pointed that the backlog of asylum seekers waiting for a decision is “huge”, around 51,000 people – and that during this time, they are not allowed to work.

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A new fast-track asylum appeals process will be introduced to speed up the process of deporting people without a right to remain in the UK.

He said: “The equivalent would be saying that imagine if A-level students this year sat the exams and were told ‘well, hold on, you’re not going to get your results for two years’ time. But in the meantime, you can’t go to university.’

“You’d have mayhem, and it’d be pandemonium in the street. You’d have broken people idle with nothing to do. Essentially, this is what’s happening to asylum seekers.”

He added that one of the reasons it takes so long for cases to be heard is because asylum seekers have to represent themselves in court, which can mean upwards of half a day is spent translating and explaining everything to them.

Mr Bhangal also said the immigration system is “broken”, because “they take ages to make a decision which could be made in one week”.

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Family pay tribute to ‘beloved’ man who died in ‘accident while working on fairground ride’

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Family pay tribute to 'beloved' man who died in 'accident while working on fairground ride'

A man who died after suffering “serious head injuries” while “working on a fairground ride” has been named as Corrie Lee Stavers.

Emergency services were called to the Spanish City Summer Funfair in Whitley Bay in North Tyneside after reports that a man, in his 20s, had been injured around 2.15pm on Saturday, police said.

Mr Stavers, 28, was treated at the scene but was declared dead a short time later.

In a statement issued by the police, his family said: “It’s with broken hearts that we share the devastating news that our beloved Corrie has passed away.

“He was tragically taken from us in an accident while working on a fairground ride. None of us were prepared for this, and the pain of losing him so suddenly is impossible to put into words.

“Our lives will never be the same without him, but his memory will live on in our hearts forever.

“We love you endlessly Corrie, and we miss you more than words can ever say.

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“You’re with our mam now – rest in peace Corrie.”

The funfair, which is in Whitley Bay’s Spanish City Plaza area, has been shut “until further notice” and the Health and Safety Executive has been informed.

The annual funfair had opened on Thursday and had been due to run until Bank Holiday Monday.

Read more from Sky News:
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A Northumbria Police spokesman said: “Emergency services attended and a man in his 20s was found to have suffered serious head injuries.

“Despite the best efforts of medical staff, a short time later the man was sadly declared dead.

“His next of kin have been contacted and are being supported by specialist officers.”

The spokesman added: “Our thoughts are with the man’s family at this extremely difficult time.

“We have contacted the Health and Safety Executive and are working with them to establish exactly what happened.

“The fair has been closed to the public and will remain closed until further notice.”

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