Royal Mail second class Saturday deliveries could soon end, as the regulator Ofcom considers reforms aimed at helping Royal Mail adapt to the evolving postal landscape. This shift is part of broader reforms being evaluated to help Royal Mail adapt to the evolving postal landscape, which has seen a steady decline in letter volumes alongside a surge in parcel deliveries. The regulator is also exploring whether second class deliveries could be restricted to alternate weekdays, a move that would further cut costs for Royal Mail, potentially altering the traditional six-day delivery schedule.
The ongoing review by Ofcom is centred around the Universal Service Obligation, a mandate that requires Royal Mail to deliver letters six days a week and parcels five days a week. However, the postal service has been struggling with declining letter volumes, resulting in significant financial losses. The number of letters sent in the UK has halved since 2011, while parcel volumes have grown substantially, particularly during the pandemic when online shopping boomed. This shift in consumer behaviour has forced Royal Mail to reassess its business model and look for ways to remain financially sustainable.
Lindsey Fussell, Ofcom’s group director for networks and communications, highlighted the urgency of reform, stating on BBC’s Today programme that the universal service “does need to change.” She warned that without changes, the service could become unsustainable, leading to higher costs for consumers. The potential adjustments include allowing Royal Mail to reduce the frequency of second class deliveries, which could see letters delivered on alternating weekdays such as Monday, Wednesday, and Friday one week, then Tuesday and Thursday the following week.
Royal Mail’s owner, International Distribution Services (IDS), has expressed strong support for these changes, emphasising that “change cannot come soon enough.” The IDS chief executive, Martin Seidenberg, underscored the financial pressures facing the universal service, describing the situation as a “very real and urgent financial sustainability challenge.” The company is eager for reforms that would reduce the burden of mandatory service obligations amidst growing competition from other parcel delivery firms.
Ofcom has not yet reached a final decision on the proposed changes but continues to assess the options. A public consultation is expected to be launched early next year, with a decision anticipated in the summer. This ongoing review comes as IDS, the parent company of Royal Mail, is in the process of being acquired by Czech billionaire Daniel Kretinsky in a £3.57 billion deal. The changes could also impact Royal Mail’s compliance obligations, as the company was previously fined £5.6 million by Ofcom for failing to meet its delivery targets.
The decline in letter volumes has been a long-standing trend, exacerbated by the rise of digital communication and e-commerce. Royal Mail’s traditional letter delivery service is now dwarfed by the parcel sector, which continues to grow as consumers increasingly opt for online shopping. The adjustments proposed by Ofcom could help Royal Mail adapt to these new market realities, but the changes would mark a significant shift in the company’s operations and the postal services that millions of UK residents have come to rely on.
As the landscape of postal services evolves, these potential reforms highlight the need for Royal Mail to balance its historic commitments with the modern demands of the market. Ofcom’s upcoming decisions will be pivotal in shaping the future of the UK’s postal system, ensuring it remains sustainable and capable of meeting the needs of today’s consumers.
As the Royal Mail considers these proposed changes, the impact on both the service and its customers will be significant. Understanding how this could affect your postal services and what it means for the future, you can learn more from the expert insights provided by Citizens Advice.
