Delivery processes of Royal Mail undergo substantial modifications effective immediately, aimed at securing the service's continuation.
Royal Mail Overhaul: Altered Delivery Times, Costs, and Service
In a bid to stay afloat in the modern landscape, Royal Mail is undergoing significant changes, as outlined by a spokesperson for the organisation. These alterations, overseen by communications regulator Ofcom, will bring about key adjustments to delivery times, costs, and service.
Delivery Times
Starting from July 28, 2025, after a phased rollout over 12-18 months, Second Class letters will no longer be delivered six days a week. Instead, they will be delivered on alternate weekdays, approximately three days a week. The target for Second Class delivery has been adjusted to 95% delivered within three days, down from 98.5%, reflecting the acceptance of a slower but more cost-effective service. New "backstop" reliability targets require 99% of mail to be delivered no more than two days late, ensuring a maximum delay threshold.
First Class letters will retain six-day-a-week delivery but with reduced next-day delivery reliability targets from 93% down to 90%. This adjustment aims to maintain the target of all second-class letters arriving within three working days.
Costs
The reforms are designed to help Royal Mail reduce costs by £250 million to £425 million annually. Ofcom is also launching a consultation to review stamp prices amid affordability concerns, indicating potential future cost adjustments.
Service Changes
The Universal Service Obligation (USO) is downgraded, no longer requiring six-day delivery for Second Class letters, though six-day delivery for First Class mail continues with lower reliability standards. Royal Mail is implementing a change to delivery times, effective from July 28.
Work practices are being overhauled: Royal Mail replaces fixed delivery duties with flexible "core" and "combined" routes, increasing workloads and extending delivery spans by over five hours to accommodate parcel prioritization. Parcel delivery services remain unaffected, reflecting the growth in parcel demand over letters. These changes respond to a significant decline in letter volumes (halved in a decade) and rising parcel volumes due to e-commerce.
Natalie Black, Ofcom's group director for networks and communications, believes the changes are in the best interests of consumers and businesses. However, Ofcom has stated that changing Royal Mail's obligations alone will not guarantee a better service. The updated scheduling is part of Royal Mail's efforts to 'survive', and the company now has to implement the changes effectively, according to Ofcom. The focus of Royal Mail customers is on affordable and reliable postage, as outlined by Ofcom, with weekend deliveries for second-class post scrapped to achieve these goals.
- In an attempt to balance affordability and wellness of its workforce, Royal Mail will implement new work practices, such as replacing fixed delivery duties with flexible routes, to reduce costs and accommodate parcel prioritization while extending delivery spans by over five hours.
- To maintain a healthy balance between financial sustainability and family values, Ofcom's group director, Natalie Black, believes that the alterations made to Royal Mail's services are in the best interests of consumers and businesses, as the focus of customers revolves around affordable and reliable postage, even if it means scrapping weekend deliveries for second-class post.
- As part of Royal Mail's home renovation, it will invest in beauty and efficiency by streamlining delivery routes and concentrating on parcel delivery services, which have seen a significant increase in demand due to e-commerce, while considering the need for wellness and a better work-life balance among its employees by implementing flexible work schedules.
