Securing the future of the Universal Service
Reforming letter deliveries to ensure a reliable, affordable and sustainable service
Delivering a reliable service and a viable future
The Universal Service plays a vital role in connecting the nation. As the designated service provider, Royal Mail is required to deliver a one-price-goes-anywhere service, six days a week, to all 32 million addresses in the UK, which is regulated by Ofcom.
Royal Mail is committed to protecting the choice of price and speed for organisations using mail to reach people in all corners of the UK. However, change is needed to make the postal service more reliable and financially sustainable.
Why does the Universal Service need reforming?
The letters market has changed.
To deliver the Universal Service Obligation (USO) in its current form, Royal Mail must maintain a high fixed-cost network without the revenue to sustain it.
Ofcom calculates that providing the current USO to the UK has a net cost to Royal Mail of between £250m to £425m every year.
Many countries across the world – from Germany and France to Canada and New Zealand – have already made changes to how quickly and how often letters are delivered.
What wouldn’t change?
Royal Mail ran an extensive independent consultation exercise to understand how different groups use its services, what they wanted to see from a reformed Universal Service and the impact any changes might have.
Royal Mail conducted over 3,500 interviews across all four regions of the UK, including consumers, large and small businesses, vital public services like the NHS and groups representing vulnerable customers. It also consulted widely with its people and unions.
The findings of the extensive consultation informed the proposal which is designed to protect what matters most to customers, with no changes to:
- The one-price-goes-anywhere service to all parts of the UK
- First Class letters delivered daily, six days a week, Monday to Saturday
- The option of First Class and Second Class letters, giving people the choice of price and speed
- Collections continuing to be six days a week, Monday to Saturday
- Parcels delivered up to seven days a week as currently.
What are the proposed changes?
The core principles of the USO remain unchanged. However, the proposal includes vital changes to deliver a modern and more financially sustainable Universal Service. Key changes to Letters services include:
- All non-First Class letter deliveries, including Second Class, would be delivered Monday to Friday.
- The delivery speed of standard bulk business mail (used by large mail shippers for bulk mailings such as bills and statements) would be aligned to Second Class, so it arrives within three weekdays instead of two.
New reliability targets for First Class and Second Class services, alongside modernised speed targets have also been proposed to improve customer confidence.
Securing the future
By protecting the USO, the proposed reform will enable Royal Mail to continue delivering a national postal service designed for the future. It will uphold the one-price-goes-anywhere service, ensuring delivery six days a week, and support ongoing investment in modernisation and transformation to provide the products and services customers want.
At the same time, it will contribute to reducing the company’s environmental impact, reinforcing its status as the greenest delivery provider in the country. These changes will allow Royal Mail to remain a vital pillar for businesses, public services, and consumers alike.
What happens next?
- Ofcom has announced a period of consultation regarding changes to the USO. The deadline for feedback is 5pm on 10 April 2025.
- Once Ofcom has feedback, it plans to publish its decision in the summer of 2025. If it decides to make any changes to the existing rules, it has said they will come into effect on the day it publishes.
- Royal Mail will only look to implement the new operating model if Ofcom’s new regulations come into force. Until then, the current regulatory framework remains in place and any proposals are subject to change.
- In preparation for change, Royal Mail will be piloting the proposal in 37 delivery offices to ensure everything runs smoothly. The first one starts in February and the rest will be rolled out gradually over the following months.
Have your say
Ofcom has provided a process for having your say. The deadline for feedback is 5pm on 10 April 2025. You can access the response form here.
