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Royal Mail is set to axe Saturday second-class letter deliveries and implement an alternate weekday service under proposals put forward by the postal regulator, Ofcom. The changes aim to make the universal postal service more sustainable while preserving key elements that matter most to customers. First-class deliveries will continue six days a week, while the price cap on second-class stamps will remain in place.
According to Natalie Black, Ofcom’s group director for networks and communications, the dramatic decline in letter volumes has necessitated these reforms. “The world has changed. We’re sending a third of the letters we did two decades ago. Reforms are vital to ensure the postal service continues to serve the UK effectively,” she explained. Currently, Royal Mail is designed to handle 20 billion letters annually but now delivers just 6.7 billion, making widespread network reform essential.
Emma Gilthorpe, chief executive of Royal Mail, echoed the urgency for revision, stating that the proposals were crafted after consultations with thousands of customers. “The reforms are meant to protect the future of the universal service whilst maintaining the one-price-goes-anywhere principle and ensuring first-class post operates six days a week.”
These changes will lower delivery performance targets for letters and bring Royal Mail’s services in line with international standards. For first-class mail, the target will be reduced from 93 per cent to 90 per cent delivered the following day. Second-class mail, currently at 98.5 per cent delivered within three days, will drop to 95 per cent.
The Greeting Card Association (GCA), representing a £1.5 billion sector, has voiced opposition. The group has created a petition to push MPs to scrutinise the plan. They argue that such substantial changes should not be implemented without parliamentary intervention. However, Ofcom asserts the adjustments are vital to financial sustainability given the ongoing decline in demand.
Beyond delivery changes, the regulator has attempted to safeguard public interest. This includes commitments from Royal Mail’s owner, Czech billionaire Daniel Kretinsky, who recently acquired the business for £3.6 billion. Under his leadership, Royal Mail will retain its headquarters, brand name and tax residency in the UK, while pension surpluses are protected as part of the deal.
Royal Mail continues to face mounting challenges, including being fined for missing performance targets in recent years. However, both Ofcom and the company see these reforms as the pathway to securing its long-term viability in a rapidly changing market for postal services.
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