Royal Mail can ditch second class letter deliveries on Saturdays and change the service to every other weekday under a series of reforms by regulator Ofcom that will also see it review the rising cost of stamps.
Ofcom said that it had given the green light to Royal Mail to axe the six-day-a-week service for second-class letters, but that it must keep Monday to Saturday deliveries for first-class post.
It said it would maintain the target for second-class letters to arrive within three working days despite allowing changing deliveries to alternate weekdays.
The changes can take effect from July 28 and come after a lengthy consultation that will help Royal Mail cut costs by between £250 million and £425 million a year, according to Ofcom.
Royal Mail is not expected to push through the overhaul to all second-class letter deliveries across the UK from this month, but will look to roll it out over the next 12 to 18 months, having already launched pilots in 37 of its 1,200 delivery offices.
The plans met with fierce criticism from consumer and businesses groups, while there were also trade union concerns.
Ofcom said reform of the so-called universal service was needed to help it “survive”, as people send far fewer letters and as the cost of stamps has been soaring.
It also said it was launching a review of the price of stamps amid concerns over affordability, with a consultation set for next year.
We're reforming the UK's postal service so it delivers what people need:
— Ofcom (@Ofcom) July 10, 2025
✅ First Class still next-day Mon-Sat
📆 Second Class: every other weekday
🛑 New delivery targets to cut long delays
💷 2nd class stamp price cap remains
🔗 https://t.co/QBIaH4uHzj pic.twitter.com/JO3RN45GXN
It added that targets would be lowered for first-class post to be delivered the next day from 93% to 90% and second-class to be delivered within three days from 98.5% to 95%.
But Ofcom said it was adding a new “enforceable” backstop delivery target, so that 99% of mail has to be delivered no more than two days late.
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.”
Martin Seidenberg, chief executive of Royal Mail parent firm International Distribution Services (IDS), welcomed the move from Ofcom, having long urged the Government for reform of the universal service.
He said: “It is good news for customers across the UK as it supports the delivery of a reliable, efficient and financially sustainable universal service.”
Royal Mail made a loss of £348 million in 2023-24, even though the cost of a first class stamp now stands at £1.70 after big hikes in recent years.
But 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.
Citizens Advice said Ofcom had “missed an opportunity” for more significant changes, while the Liberal Democrats said Royal Mail had been let “off the hook”.
Tom MacInnes, director of policy at Citizens Advice, said: “Royal Mail has a woeful track record of failing to meet delivery targets, all the while ramping up postage costs.
“Today, Ofcom missed a major opportunity to bring about meaningful change.”
Liberal Democrats business spokeswoman Sarah Olney added: “This is a deeply worrying decision that could leave countless people who rely on these deliveries in the lurch.”
The Communications Workers Union (CWU) raised worries that cutting the second class service back will not be a “one-stop solution for the problems in the postal service”.
The Government said it was “right” for Ofcom to look at postal reforms.
“We now need Royal Mail to work with unions and posties to deliver a service that people expect, and this includes maintaining the principle of one price to send a letter anywhere in the UK,” a Government spokesperson added.
The overhaul follows 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.
