Transforming the UK Postal Service: Major Cuts to Second-Class Deliveries Proposed

Ofcom has proposed significant reforms to the UK’s postal service, suggesting that Royal Mail should only deliver second-class letters every other weekday and discontinue Saturday deliveries. This initiative aims to address the declining volume of letters sent and rising postage costs, as stamp prices have increased dramatically since 2022. Currently, Royal Mail is obligated by the Universal Service Obligation (USO) to deliver mail six days a week, but with letter deliveries plummeting from 20 billion in 2004-05 to just 6.6 billion in recent times, Ofcom believes changes are necessary to secure the future of the postal service.

Key proposals include maintaining first-class letter deliveries six days a week while reducing second-class deliveries to alternate weekdays. Ofcom has also suggested lowering delivery performance targets for first-class mail from 93% to 90% and for second-class mail from 98.5% to 95%. Implementing these changes could potentially save Royal Mail between £250 million and £425 million, allowing the company to improve reliability and focus more on parcel services amidst the decline of traditional letter deliveries.

Despite these recommendations, backlash from stakeholders such as the Post Office has emerged, expressing concerns that alterations to the USO could negatively impact vulnerable communities and lead to worse postal service efficiency. Public sentiments have echoed these concerns, with individuals like Lynda Parker highlighting grave concerns about delivery delays affecting critical correspondence, such as hospital appointment letters.

Ofcom is currently seeking public input on these proposals until April 10, 2025, with a decision anticipated in summer 2025. Royal Mail will also conduct a pilot scheme in 37 delivery offices, which will operate under the new second-class delivery schedule starting in February. The changes have far-reaching implications for over a million households and businesses across the UK, paralleling the sale of Royal Mail’s parent company to Czech billionaire Daniel Kretinsky for £3.6 billion, while still adhering to a USO commitment.