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Ofcom is looking at potential changes to the UK’s postal service, specifically tweaking how Second Class letters are delivered, while keeping the First Class service the same.
The idea behind these changes is to make sure the postal service stays affordable, efficient, and sustainable as fewer people send letters and Royal Mail faces financial challenges.
Under the proposals, Second Class letters would continue to be delivered within three working days but would no longer be delivered on Saturdays.
This change, originally proposed by Royal Mail in January as part of its “modernisation” strategy, is designed to improve reliability, achieve significant efficiency savings, and allow the company to redeploy resources to growth areas, such as parcel deliveries.
The First Class service would remain unchanged, offering next-day delivery six days a week.
The proposed changes come after a ‘national debate’ launched by Ofcom earlier this year, where they gathered opinions from consumers, businesses, unions, and public services included.
Thousands of responses poured in, reflecting how postal use in the UK is evolving and pointing to the need for some changes in Royal Mail’s obligations.
While many agreed that adjustments are necessary, there was strong support for sticking to the core principles of universality, affordability, and uniform pricing.
“Our research shows that affordability is the most important feature for people when it comes to letter deliveries,” said Lindsey Fussell, Ofcom’s Group Director for Networks and Communications. “We are committed to ensuring there is an affordable option available for consumers, on a ‘one price goes anywhere’ basis.”
Ms Fussell further emphasised that the needs of postal users are central to Ofcom’s review process.
“If we decide to propose changes to the universal service next year, we want to make sure we achieve the best outcome for consumers,” she said. “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.”
The proposed changes, if implemented, would not require any new legislation, as they fall within Ofcom’s regulatory remit.
The regulator plans to conduct further research with postal users to assess whether these changes align with their needs before launching a formal consultation in early 2025.
A decision is expected to be published by summer 2025.
Concerns Over Royal Mail’s Performance
The potential reforms come amid ongoing concerns about Royal Mail’s delivery performance.
Ofcom has found Royal Mail in breach of its quality of service obligations twice in the past five years, leading to significant fines and continued regulatory oversight.
Most recently, the company failed to meet its delivery targets for the 2023/24 period, prompting Ofcom to launch an investigation.
Tom MacInnes, Interim Director of Policy at Citizens Advice, expressed concern over Royal Mail’s recent track record.
“With Royal Mail failing to meet its targets for nearly half a decade, the current Universal Service Obligation (USO) clearly doesn’t protect consumers as it should,” he 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.”
Mr MacInnes continued, “We agree that improving reliability and affordability is essential. But cutting deliveries won’t automatically lead to the more reliable service people need. 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.”
Ofcom’s proposals are part of a broader strategy to adapt the UK’s postal service to changing user behaviours and financial realities.
As letter volumes decline and parcel deliveries become more prevalent, there is a clear need to evolve the service to meet modern demands.
Ofcom notes that other European countries have already made similar adjustments to their postal services, with some reducing delivery days more drastically than currently proposed for the UK.
Royal Mail has committed to improving its delivery performance and has started to modernise its network to become more efficient.
However, Lindsey Fussell highlighted, any reforms to the universal postal service will require Royal Mail to continue investing in its infrastructure and improving its service levels.
“Postal users’ needs are at the heart of our review,” She reiterated. “We want to ensure that any changes to the universal service achieve the best outcome for consumers, balancing affordability, reliability, and efficiency.”
As Ofcom prepares for further consultation and research, the future of the UK’s postal service remains a key topic of public interest, with a focus on balancing the needs of consumers with the financial sustainability of the service.
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