Ofcom confirms major changes to UK postal system

Ofcom, the UK regulator for the communications services, has confirmed its decision to support major changes to the Universal Postal Service in the UK.

Under the reforms, which were refined through a detailed consultation process, Royal Mail will continue to provide a six-day-a-week service for First Class letters, but Second Class letters will now be delivered over three alternate weekdays instead of six. Saturday deliveries will no longer apply to this category, while parcels will reportedly remain unaffected by these changes.

Royal Mail’s quality of service targets are also being reset following the changes. First class on-time delivery targets will drop from 93% to 90%, and Second Class from 98.5% to 95%. A new “tail of mail” target has also been introduced meaning 99% of First Class letters must now arrive within three days, and Second Class within five days.

These changes will come into legal effect from July 28^th, 2025, with new quality targets enforced from April 1^st, 2026. Ofcom will closely monitor Royal Mail’s implementation progress and expects consistent communication with the industry throughout this period, including the creation of a stakeholder forum to share updates and gather feedback.

The changes have been made with the aim of preserving the integrity of the ‘one-price-goes-anywhere’ principle of posting letters, while making the service more efficient. The hope is to create a modernised, financially sustainable delivery model for the UK postal service while saving on costs.

Ofcom’s decision follows an impact assessment and consultation process in which over 7,000 responses were received from postal users, industry stakeholders, and consumer groups.

Ofcom’s review found that letter volumes have halved over the past decade, while parcel volumes have grown, and concluded that the existing model is therefore no longer sustainable.

The regulator believes the changes strike a balance between maintaining a robust postal service for all UK citizens and ensuring Royal Mail can operate viably in the future.

The changes have been welcomed by Royal Mail, who are aiming to move ahead with deployment as soon as possible, taking the learnings from pilot rollouts of the changes they have been running since February. The timing and specifics of deployment are due to be discussed by Royal Mail with its trade unions in due course.

Martin Seidenberg, group chief executive officer of International Distribution Services, the owner of Royal Mail, says: “We welcome today’s announcement from Ofcom.

“It is good news for customers across the UK as it supports the delivery of a reliable, efficient, and financially sustainable universal service. It follows extensive consultation with thousands of people and businesses to ensure that the postal service better reflects their needs and the realities of how customers send and receive mail today.”

The Strategic Mailing Partnership (SMP), a UK-based organisation representing the interests of printers and mailing houses within the mailing industry, has also come out in support of the changes.

Lucy Swanston, chair of the SMP, says: “As an industry, Ofcom’s announcement represents the most significant change to the Universal Service in decades.

“The changes announced today we hope will help Royal Mail better protect the one-price-goes-anywhere service that our customers value, and support the delivery of a more reliable, efficient, and financially sustainable postal service. Royal Mail are reviewing the announcement and will provide further detail in due course.”