Royal Mail has been granted permission by the communications watchdog to slow down first and second-class letter deliveries as part of a cost-cutting measure.
As of the end of July, Ofcom's new regulations will permit Royal Mail to deliver second-class letters on alternate weekdays from Monday to Friday, rather than six days a week, as reported by .
The proportion of first-class mail that must be delivered the next day will be reduced from 93% to 90%, while the percentage of second-class mail delivered within three working days will be cut from 98.5% to 95%. Despite these changes, Ofcom maintains that these figures remain high by international standards.
It is estimated that these relaxed rules could save Royal Mail between £250m and £425m annually if effectively implemented, potentially offsetting the £348m loss recorded in the 2023/24 financial year. Ofcom justified this move citing research indicating that affordability and reliability are more valued by consumers than delivery speed, although they appreciate having a next-day service for occasional urgent items.
Natalie Black, Ofcom's Group Director for Networks and Communications, stated: "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."
Black highlighted that Ofcom has initiated a review into the cost issues related to stamp price hikes and is set to engage the public for input in the forthcoming year.
The regulator remains troubled by notable lags in letter deliveries, which have stretched to weeks for some pieces of post. To combat this, it has issued Royal Mail new compulsory targets ensuring 99% of mail is delivered no more than two days beyond due time.
In a historic move this April, the International Distribution Services (IDS) group, Royal Mail's parent company, was taken over by the Czech-based EP Group, owned by multi-billionaire Daniel Křetínský, at a deal value of £3.6bn, marking the first instance of the postal entity entering foreign proprietorship.
