The postal service is a lifeline for many in our community, ensuring that individuals, businesses, and public services stay connected. However, with changing communication habits and declining letter volumes, Ofcom, the UK’s communications regulator, is now reviewing the Universal Postal Service (UPS) to assess how it can remain financially viable while continuing to serve the public’s needs.

I want to make sure you are informed about these proposed changes and encourage you to take part in this important consultation.

Why Is Ofcom Conducting This Review?

The Universal Postal Service is currently provided by Royal Mail and ensures that:

• Letters can be sent anywhere in the UK for the same price.
• There are six-day-a-week deliveries (Monday to Saturday) for first-class mail and five-day-a-week deliveries (Monday to Friday) for second-class mail.
• A wide network of post offices and post boxes are available to the public.

However, Royal Mail is facing financial difficulties, mainly due to a sharp decline in letter volumes—falling by 46% since 2011—while parcel deliveries have increased. As a result, Ofcom is proposing changes to make the service more financially sustainable while still meeting public needs.

What Are Ofcom’s Key Proposals?

Ofcom’s consultation proposes two major changes to how Royal Mail delivers letters:

1. Changes to Second-Class Mail Deliveries

• Current system: Second-class mail is delivered five days a week (Monday to Friday).

• • Proposed change: Reduce second-class deliveries to every other weekday (for example, Monday, Wednesday, and Friday one week, Tuesday and Thursday the next).
  • Impact: This could reduce costs while still ensuring that most second-class letters arrive within a reasonable timeframe.

2. Changes to First-Class Mail Deliveries

• Current system: First-class mail is delivered six days a week (Monday to Saturday), with a target of 93% of letters arriving the next day.

• • Proposed change: Maintain a six-day-a-week delivery but slightly reduce the performance target to 90% instead of 93%.
  • Impact: This change would give Royal Mail slightly more flexibility in meeting delivery targets while still ensuring timely deliveries for urgent mail.

Why Do These Changes Matter?

• Declining Letter Use: Letter volumes have almost halved in the last decade due to the rise of digital communication – resulting in reported significant financial losses.
• Impact on Communities: Many people, particularly older residents and rural communities, still rely on postal services for essential communication.

These changes aim to save Royal Mail between £250 million and £425 million per year, helping to future-proof the Universal Postal Service. However, they also raise concerns about potential impacts on vulnerable groups and local businesses that depend on reliable postal deliveries.

How You Can Have Your Say

Ofcom is seeking public input before making a final decision on these changes. This is your chance to share your views and ensure that any reforms reflect the needs of all communities:

• Deadline for Responses: 5 pm on April 10, 2025
• The Full Consultation: https://www.ofcom.org.uk/post/royal-mail/consultation-review-of-the-universal-postal-service-and-other-postal-regulation/
• How to Respond: You can submit your response in one of the following ways:

Online: By clicking the ‘response form’ button at the bottom of the consultation web page (link to consultation above).

Email: Send your comments to futurepostaluso@ofcom.org.uk

Post:
Future development of the postal USO team
Ofcom
Riverside House
2A Southwark Bridge Road
London SE1 9HA