Royal Mail to stop Saturday second-class letter deliveries

Royal Mail has been given the go-ahead to scrap second-class letter deliveries on Saturdays from the end of this month, the regulator has announced.

Under reforms due to the decline of postal letters, rising prices and long delays, Royal Mail will shift to delivering second-class letters on alternate weekdays Monday to Friday.

Ofcom, estimated the change, which will come into force from July 28, could save up to £425 million in annual net costs.

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It is hoped Royal Mail will invest the savings in improving its overall delivery performance, although those targets are also being lowered.

First class will drop from 93 per cent to 90 per cent delivered the next day and second class from 98.5 per cent to 95 per cent delivered within three days.

Ofcom has also set new enforceable targets so that 99 per cent of mail has to be delivered no more than two days late.

Natalie Black, Ofcom’s group director for networks and communications, said: “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.

“But changing Royal Mail’s obligations alone won’t guarantee a better service; the company now has to play its part and implement this effectively. We’ll be making sure Royal Mail is clear with its customers about what’s happening, and passes the benefits of these changes on to them.

“As part of this process, we’ve been listening to concerns about increases in stamp prices. So we’ve launched a review of affordability and plan to publicly consult on this next year.”

Royal Mail has been required under the universal service obligation to deliver first and second-class letters six days a week since 2011.

Ofcom said the decline in the number of letters being sent had driven the cost of delivering each letter up. The regulator said its research suggested affordability and reliability were more important to people than speed of delivery.

Royal Mail delivered 6.6 billion letters in 2023-24, down from 14.3 billion in 2011-12, a drop of more than half in just over ten years. Revenue from letters has also halved, from £6.9 billion to £3.7 billion. In 2023-24, Royal Mail made a loss of £348 million.

The changes followed public consultation with people and organisations across the country.

First-class letter deliveries will continue on Saturdays. A cap on the price of a second-class stamp will remain.

The government said: “The public expects a well-run postal service, with letters arriving on time across the country without it costing the earth.

“With the way people use postal services having changed, it’s right the regulator has looked at this.

“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.”