Ofcom has said it is considering plans to ditch Saturday deliveries for second class post but keeping first class unchanged as it looks at UK postal service reforms.
The industry watchdog said it is now focusing efforts on the option of allowing Royal Mail to ditch the Saturday service for second class post and delivering on alternative weekdays.
Under these plans, second class postal delivery times would remain unchanged at three working days, while first class post would continue to be a six-day-a-week service.
Ofcom said no decision had been made and it continues to review the changes, with aims to publish a consultation in early 2025 and make a decision in the summer of next year.
Lindsey Fussell, Ofcom’s group director for networks and communications, said: ‘Postal users’ needs are at the heart of our 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.
‘So we’re now looking at whether we 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.’
Royal Mail owner International Distribution Services (IDS), which agreed a £3.57 billion takeover by Czech billionaire Daniel Kretinsky in May, said ‘change cannot come soon enough’ to the UK’s postal service.
Royal Mail proposed ditching Saturday deliveries for second class post and cutting the service to every other weekday in its submission to Ofcom in April.
Martin Seidenberg, Group CEO of International Distribution Services plc, said: ‘To save the Universal Service, we have to change the Universal Service.
‘Letter volumes have fallen from their peak of 20 billion to just 6.7 billion a year today meaning the average household now receives just four letters per week. Yet whilst most countries have adapted their Universal Service requirements to reflect the new reality, in the UK the minimum requirements have not changed.
‘Our proposal for the future of the Universal Service has been developed after speaking to thousands of people across the country and is designed to protect what matters most for customers. It can be achieved through regulatory change with no need for new legislation.
‘The Universal Service faces a very real and urgent financial sustainability challenge. Change cannot come soon enough. We look forward to continuing to engage with all our stakeholders to secure a financially sustainable Universal Service for many years to come.’