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Second-class deliveries could no longer be delivered on Saturdays next year as part of reforms from the postal service’s regulator.
First-class letters will still be delivered every day apart from Sunday, while second-class letters will continue to be delivered within three working days.
The changes from Ofcom follow a consultation among consumer groups and industry leaders including unions, business and public services.
Back in January this year, the regulator set out its target to guarantee the future of the postal service, as it said that with the UK sending fewer letters, the privatised company has lost “hundreds of millions of pounds”.
Those plans also included the idea of a delivery service to run on alternate weekdays for second-class letters. This would potentially run every Monday, Wednesday and Friday.
No finalised decisions will be published on delivery reforms until next summer, following a consultation of the plans in early 2025.
The regulator will now conduct further research as it explores ways to remain financially stable with cuts while meeting the needs of the millions of households relying on the postal service.
As well as haemorrhaging cash, the regulator noted changes had to come as the delivery performance “has not been good enough”, noting it has had to fine the Royal Mail twice in the last five years for breaching its service obligations.
The most recent fine came in November 2023, when Royal Mail was hit with a £5.6m fine from Ofcom for failing to meet first- and second-class delivery targets during the 2022/23 financial year.
These targets are known as the Universal Service Obligations (USO).
‘Postal users’ needs at heart of our review’
Lindsey Fussell, Ofcom’s group director for networks and communications, said: “Postal users’ needs are at the heart of our review. If we decide to propose changes to the universal service next year, we want to make sure we achieve the best outcome for consumers.
“So we’re now looking at whether we can get the universal service back on an even keel in a way that meets people’s needs. But this won’t be a free pass for Royal Mail – under any scenario, it must invest in its network, become more efficient and improve its service levels.”
In July, Citizens Advice described the future of the postal service as “hanging in the balance” due to delays that had affected seven million people in spring alone in the UK.
The worst impacted were disabled people, who were more likely to miss vital deadlines for benefit applications and therefore lose out on any financial support.
Commenting on the latest reforms, Tom MacInnes, interim director of policy at the charity, thinks the current USO “clearly doesn’t protect consumers as it should”.
MacInnes said: “Reforms to the USO need to address this. They can’t just be a disguise for cuts that prioritise saving Royal Mail money over providing a good standard of service.
“We agree that improving reliability and affordability is essential. But cutting deliveries won’t automatically lead to the more reliable service people need.”
He added: “Ofcom has acknowledged some of Royal Mail’s failings, but we need to see that recognised with action. The regulator needs to make sure we have a USO that serves its basic purpose of protecting consumers – not Royal Mail’s bottom line.”
