Major changes to Royal Mail’s delivery times and targets have come into effect as regulator Ofcom looks to cut costs and modernise the service.
From today, Royal Mail can start delivering second-class letters on alternate weekdays, instead of six days a week. The target to deliver these letters will remain within three working days of collection, but the letters will no longer ever be delivered on Saturdays.
First-class post will retain its Monday to Saturday delivery.
The change comes alongside a slackening of Royal Mail’s existing delivery targets. The service will now aim for 95 per cent of second-class mail to be delivered within three days, down from 98.5 per cent.
Meanwhile, the delivery target for first-class post has dropped from 93 per cent delivered next-day to 90 per cent.
Ofcom has said that the looser targets come with a new, enforceable backstop target to ensure that 99 per cent of mail has to be delivered no more than two days later. This is to crack down on an issue experienced by “many people” where “letters have taken weeks to arrive,” the regulator said.
It is not expected that the reforms to second-class deliveries will take effect in all locations immediately, but will be rolled out over the next 12 to 18 months. Royal Mail has already launched pilots in 37 of its 1,200 delivery offices.
The changes come after a lengthy consultation, and will help Royal Mail cut costs by between £250 million and £425 million a year, according to Ofcom.
The plans met with criticism from consumer and businesses groups, alongside concerns from trade unions.
Ofcom said reform of the service was needed to help Royal Mail “survive”, as people send far fewer letters and as the cost of stamps has been soaring.
It added that it is launching a review of the price of stamps amid concerns over affordability, with a consultation set for next year.
Natalie Black, Ofcom’s group director for networks and communications, said: “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.”
Royal Mail made a loss of £348 million in 2023-24, despite raising the cost of a first-class stamp to £1.70 following several hikes in recent years.
The changes also follow recent hefty fines against Royal Mail for poor performance, with an investigation launched in May after it only delivered just over three-quarters of first-class post on time last year.
The overhaul come after the recent £3.6 billion takeover of Royal Mail owner IDS by Czech billionaire Daniel Kretinsky’s EP Group, which completed in June after being cleared by the Government at the end of 2024.
Mr Kretinsky – named as the new chairman of Royal Mail after the deal – has pledged to stick to the Universal Service Obligation (USO) after the takeover.
