Ofcom has initiated plans to eliminate Saturday deliveries for second-class letters as part of a significant reform of Royal Mail’s universal service obligation. This proposed overhaul is aimed at ensuring the future sustainability of postal services.

Under the new guidelines set for consultation, first-class letters will still be delivered six days a week. Ofcom emphasized that there is considerable backing for the essential principles of universality, affordability, and uniform pricing.

A review conducted by Ofcom acknowledged that revisions to the current universal service obligation are necessary for the service to remain sustainable and dependable.

The suggested reforms echo proposals from Royal Mail, which was privatized in 2013 and is currently facing a £3.57 billion takeover bid. Royal Mail has urged Ofcom and the government to ease existing obligations, citing a “critical financial sustainability challenge.” Additionally, the postal service is preparing for another significant fine for missing delivery targets once again last year.

Martin Seidenberg, CEO of International Distribution Services, the parent company of Royal Mail, expressed support for Ofcom’s proposals, stating that adapting the universal service is essential for its survival. He highlighted a severe decline in letter volumes, dropping from 20 billion to 6.7 billion annually, leaving the average UK household receiving only four letters each week. He noted that while other countries have adjusted their universal service requirements to reflect this shift, the UK has not made similar changes.

Ofcom’s review garnered thousands of responses from various stakeholders, including consumer organizations, labor unions, and the postal sector. It was evident that there is widespread acknowledgment of changing habits regarding letter usage among individuals and businesses.

Affordability remains a pivotal concern for letter deliveries, prompting Ofcom to commit to maintaining affordable options for consumers based on a single price policy across the board.

While consumers desire a next-day delivery service available six days a week for urgent letters, it was recognized that most letters do not necessitate immediate dispatch.

These proposed adjustments may proceed without parliamentary intervention, with Ofcom planning a comprehensive consultation in early next year, followed by a final decision anticipated in the summer.

“We are exploring ways to stabilize the universal service in alignment with public needs,” stated Lindsey Fussell, Ofcom’s group director for networks and communications. “However, this will not exempt Royal Mail from the necessity of investing in its infrastructure, enhancing efficiency, and boosting service standards.”