Royal Mail will end Saturday deliveries of second-class letters from 28 July, in one of the biggest reforms to the postal service in more than a decade.
The change, approved by Ofcom, comes as the regulator pushes to modernise the universal postal service in response to plummeting letter volumes, soaring costs and growing delivery delays. Second-class mail will now be delivered on alternate weekdays, Monday to Friday.
Ofcom said the move could save Royal Mail up to £425 million a year, funds which it expects the company to reinvest in improving its overall service performance.
However, alongside the delivery shake-up, Royal Mail’s delivery targets are also being downgraded. First-class letters will now need to reach recipients the next working day only 90% of the time, down from the previous 93%. For second-class letters, the target falls from 98.5% to 95% within three days. A new rule will also require 99% of all mail to be delivered no more than two days late.
Natalie Black, Ofcom’s group director for networks and communications, said the changes were vital for the survival of the postal service.
“Urgent reform is necessary to give Royal Mail the best chance of long-term sustainability. These changes are in the best interests of consumers and businesses,” she said.
“But success now hinges on Royal Mail implementing this effectively, clearly communicating with its customers, and passing on the benefits through better reliability and affordability.”
In response to rising concern over the cost of postage, Ofcom also confirmed it is launching a review into the affordability of stamps, with a public consultation set to take place in 2026.
The decision reflects a dramatic fall in letter volumes. Royal Mail delivered 6.6 billion letters in 2023–24, less than half the 14.3 billion sent in 2011–12. Revenue from letters has also collapsed, from £6.9 billion to £3.7 billion over the same period.
Royal Mail’s financial performance has deteriorated in parallel, with the company reporting a £348 million loss in the 2023–24 financial year.
The company’s universal service obligation (USO), set in 2011, requires it to deliver letters six days a week across the UK for a uniform price. While first-class letters will still be delivered on Saturdays, Ofcom said research showed consumers now prioritise reliability and affordability over speed.
The move follows a public consultation in which businesses, consumer groups and individuals were asked about changes to the USO. Ofcom said there was support for reforms that maintain service quality while adapting to the changing way people use mail.
A spokesperson for the Department for Business and Trade said: “The public expects a well-run postal service, with letters arriving on time across the country without it costing the earth.
“With the way people use postal services having changed, it’s right the regulator has looked at this. We now need Royal Mail to work with unions and posties to deliver a service that people expect – and that includes maintaining the principle of one-price-goes-anywhere.”
A price cap on second-class stamps will remain in place.
Royal Mail now faces the challenge of stabilising its operations and restoring customer confidence after years of declining performance, industrial unrest, and mounting financial losses. With letter volumes likely to continue falling, the long-term future of the universal postal service may depend on how well these reforms deliver on their promises.
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Royal Mail to scrap Saturday second-class deliveries in major overhaul