In a significant overhaul of Royal Mail’s universal service obligation, Ofcom, the UK’s communications regulator, has proposed scrapping the delivery of second-class letters on Saturdays. This move comes as part of a broader review aimed at ensuring the sustainability, affordability, and reliability of the postal service in the face of changing consumer habits. Under the proposed changes, first-class letters would continue to be delivered six days a week, maintaining a crucial aspect of the universal service. Ofcom’s review, conducted earlier this year, acknowledged the need for adjustments to keep the service viable in the long term.
The proposals align closely with suggestions made by Royal Mail, which has been advocating for a relaxation of service requirements due to what it describes as an “urgent financial sustainability challenge”. The former state postal operator, privatised in 2013, is currently the subject of a £3.57 billion takeover bid. Martin Seidenberg, group chief executive of International Distribution Services, Royal Mail’s parent company, welcomed Ofcom’s proposals.
He highlighted the dramatic decline in letter volumes, which have fallen from a peak of 20 billion to 6.7 billion annually, resulting in the average household receiving only four letters per week. Ofcom’s review garnered thousands of responses from various stakeholders, including consumer groups, unions, businesses, and public services. The regulator noted a general recognition that letter usage patterns have evolved significantly.
Affordability emerged as the most critical feature of letter deliveries, prompting Ofcom to commit to maintaining an “affordable option available for consumers, on a ‘one price goes anywhere’ basis”. The proposed changes could be implemented without parliamentary legislation. Ofcom plans to launch a detailed consultation in early 2025, with a decision expected by summer.
Lindsey Fussell, Ofcom’s group director for networks and communications, emphasised that these changes would not give Royal Mail a “free pass”, insisting that the company must invest in its network, improve efficiency, and enhance service levels. As the postal landscape continues to evolve, these proposed reforms represent a significant shift in the UK’s postal service model, balancing the need for modernisation with the preservation of essential universal service principles.
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