Royal Mail shake-up: Ofcom delivers new rules to cut delays and keep post affordable

Love Ballymena
Jul 10
3 min read

Big changes are on the way for the UK’s postal system – and if you’re fed up with late letters or rising stamp prices, you might welcome the news.

Ofcom has announced major reforms to Royal Mail’s delivery obligations in a bid to protect the struggling universal postal service, cut long delivery delays, and stop stamp prices from spiralling out of reach.

Why Now?

The number of letters being sent has dropped off a cliff – from 14.3 billion in 2011/12 to just 6.6 billion last year. At the same time, it’s become much more expensive to deliver each one. Royal Mail is now losing hundreds of millions every year, including a £348 million loss in 2023/24 alone.

Something had to give. Ofcom’s new rules aim to keep the service going, while making it more efficient, more reliable – and hopefully, more affordable.

“Urgent reform of the postal service is necessary to give it the best chance of survival,” said Natalie Black, Ofcom’s Group Director for Networks and Communications. “These changes are in the best interests of consumers and businesses.”

Second Class gets a slower track – but stays reliable

From 28 July, Second Class letters will no longer be delivered every weekday. Instead, they’ll arrive on alternate weekdays (Monday to Friday) – but they’ll still meet the target of being delivered within three working days.

Why? Most post isn’t urgent. Ofcom’s research found people care more about reliability and affordability than speed – and this change alone could save Royal Mail up to £425 million a year.

New delivery targets: Still fast, just a little less so

Ofcom is also relaxing some of Royal Mail’s delivery targets – just slightly:

First Class: Now 90% (down from 93%) must arrive the next working day

Second Class: 95% (down from 98.5%) must arrive within three working days

Despite the tweaks, these are still among the toughest standards in Europe, beating countries like Norway and Poland.

But here’s the big one: to stop those nightmare delays where a letter takes weeks to show up, Royal Mail will now be required to deliver 99% of all mail no more than two days late. That target will be legally enforceable.

Concerned about stamp prices? So is Ofcom

If you’ve winced at the cost of a stamp lately, you’re not alone. As part of this reform, Ofcom is launching a full review of stamp affordability, with a public consultation planned for next year.

The price cap on Second Class stamps will remain for now, offering some protection for budget-conscious households and small businesses.

“We’ve been listening to concerns about increases in stamp prices,” said Black. “We plan to publicly consult on this next year.”

Who sends letters anyway?

Interestingly, the majority of letters delivered these days – around 63% – come from banks, government bodies, councils, and the NHS. These bulk letters aren’t part of the universal service, but they still rely on Royal Mail’s delivery network.

To make the whole system more efficient, Ofcom is also tweaking the rules around how Royal Mail works with other postal operators, making sure the same delivery network works smarter for everyone.