Communications regulator Ofcom has today [10 July 2025] set out new reforms to the universal service obligation (USO), impacting how Royal Mail will operate going forward.
One of the biggest changes announced in these reforms is Ofcom’s decision to allow Royal Mail to deliver second-class letters on alternate weekdays, and not on Saturdays.
This will work on a two-week cycle, whereby second-class mail is delivered on Monday, Wednesday and Friday one week, and then on Tuesday and Thursday the following week.
Prior to these reforms, second-class mail was delivered from Monday through to Saturday each week, with delivery expected in “two to three working days including Saturdays”.
Royal Mail still expects that second-class mail will still be delivered “within three working days of collection” under this reformed system.
Underlining the reasons for changing the USO, Ofcom noted that – since 2011 – Royal Mail has been required under the obligation to deliver first- and second-class letters six days a week, but in that time ‘the number of letters sent each year has more than halved’.
The regulator estimates that Royal Mail ‘could realise annual net cost savings of between £250 million and £425m with successful implementation of this change, enabling it to invest more in improving its delivery performance’.
It also noted that feedback from the public indicated that the majority of letters sent are not urgent, and therefore do not need six-days-per-week delivery.
Natalie Black, group director for networks and communications at Ofcom, commented: “These changes are in the best interests of consumers and businesses, as urgent reform of the postal service is necessary to give it the best chance of survival.
“But changing Royal Mail’s obligations alone won’t guarantee a better service – the company now has to play its part and implement this effectively. We’ll be making sure Royal Mail is clear with its customers about what’s happening, and passes the benefits of these changes on to them.
“As part of this process, we’ve been listening to concerns about increases in stamp prices. So we’ve launched a review of affordability and plan to publicly consult on this next year.”
In addition to the second-class delivery schedule changes, Ofcom is also making changes to Royal Mail’s delivery targets. The expectation that 93% of first-class mail to be delivered next-day will be dropped to 90%, and for second-class mail, the current target for 98.5% to be delivered within three days will be reduced to to 95%.
An Ofcom investigation was opened in May 2025 into Royal Mail’s compliance with these delivery targets, having missed both in 2024/25, only delivering 76.5% of first-class mail and 92.2% of second-class mail within the expected delivery timeframes.
This is not the first time an investigation has had to be conducted on this matter. In December 2024, Ofcom fined Royal Mail £10.5m for failing to meet its delivery targets in 2023/24, and in November 2023, it fined the company £5.6m for failing to meet its targets in 2022/23.
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Responding to the news of USO reforms, Martin Seidenberg, group CEO at International Distribution Services – which owns Royal Mail – said: “We welcome today’s announcement from Ofcom. It is good news for customers across the UK as it supports the delivery of a reliable, efficient and financially sustainable universal service.
“It follows extensive consultation with thousands of people and businesses to ensure that the postal service better reflects their needs and the realities of how customers send and receive mail today.”
The public consultation included working with consumer groups, unions, small businesses, public services, Royal Mail and the wider postal industry – as well as postal users directly – from across the UK.
Ofcom previously outlined different options for redesigning the USO in January 2024, one involving moving to a five-day-per-week or even a three-day-per-week delivery service, and the other centring around changes to delivery speeds.
Royal Mail is now owned by Czech billionaire Daniel Křetínský, after the takeover gained approval from the UK government in December 2024, later being approved by the majority of shareholders in April 2025 and receiving final regulatory clearance from the European Commission in May.
Křetínský was appointed chairman of Royal Mail in June.
