The UK’s regulatory body Ofcom will review whether changes to Second Class letter delivery, while keeping the six-day-a-week First Class next-day service, would still meet the needs of postal users. It will seek public feedback on these proposals early next year.
Ofcom’s role is to ensure that the postal service is available to everyone, meets users’ needs, and is affordable, efficient, and financially stable.
In a release titled “Securing the future of the universal postal service,” Ofcom says In recent years, people have been sending far fewer letters, and Royal Mail has been losing hundreds of millions of pounds.
“If the universal postal service does not evolve to align with customer needs, it risks becoming unsustainable, and people could end up paying higher prices than necessary,” Ofcom explains.
Public agrees on need for changes to postal service
Attendants at Ofcom’s public events agreed that the way letters are used have changed. They also acknowledged that Royal Mail will need to adjust its obligations to keep the service sustainable, affordable, and reliable.
“We have heard from thousands of people and organizations, including consumer groups, unions, businesses, public services, Royal Mail and the wider postal industry, as well as from postal users directly, from right across the UK,” Ofcoms states.
Information collected by Ofcom
The regulatory body’s research shows that affordability is the most important feature to people when it comes to letter deliveries. “We will therefore continue to ensure there is an affordable option available for consumers, on a ‘one price goes anywhere’ basis,” Ofcom says.
- People appreciate having a six-day next-day service for urgent letters or cards, most letters aren’t urgent.
- Maintaining Second Class delivery within three working days (excluding Saturdays) and keeping First Class service unchanged would help Royal Mail boost reliability, cut costs, and focus more resources on growing areas like parcels.
What are the next steps?
Ofcom will now carry out in-depth research among postal users to explore whether this option – which broadly aligns with one of the options it set out earlier this year – meets postal user’s needs.
“As we assess this, we will take full account of the issues and concerns raised by respondents to our national debate,” says Ofcom.
Ofcom points out the changes it is assessing could be made through Ofcom’s regulations, and would not require parliament to make any changes to legislation.
“Following the conclusion of our further consumer research, we expect to consult on detailed proposals for reform in early 2025, with a view to publishing a decision in summer 2025.”
Ofcom highlights that many other countries in Europe have already reformed their universal postal service, with some reducing delivery days more radically.
Royal Mail not performing
Ofcom has been pressing Royal Mail on what it is doing to turn things around.”We are currently investigating its latest failure to hit its annual delivery targets. Regardless of how the universal service evolves, Royal Mail’s delivery performance must improve.”
Lindsey Fussell, Ofcom’s Group Director for Networks and Communications says postal users’ needs are at the heart of Ofcom’s review.
“If we decide to propose changes to the universal service next year, we want to make sure we achieve the best outcome for consumers,” says Fussell.
Fussell adds that the body will now be looking at whether it can get the universal service back on an even keel in a way that meets people’s needs. “But this won’t be a free pass for Royal Mail – under any scenario, it must invest in its network, become more efficient and improve its service levels,” says Fussell.
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About the author
Sharl is a qualified journalist. He has over 10 years’ experience in the media industry, including positions as an editor of a magazine and Business Editor of a daily newspaper. Sharl also has experience in logistics specifically operations, where he worked with global food aid organisations distributing food into Africa. Sharl enjoys writing business stories and human interest pieces.
