Ofcom statement

Ofcom has today announced that they are looking at potential options for the future of the USO.

Ofcom has said they are gathering evidence on how the Universal Service might need to evolve to more closely meet consumer needs. We welcome Ofcom’s announcement and the recognition that the USO needs to reflect the changing needs of postal users.

We are proud to be the Universal Service provider and remain committed to providing an affordable and sustainable ‘one price goes anywhere’ service on a range of letters and parcels across the UK.

Letter volumes have fallen by more than 60% since their peak - from 20 billion in 2004/5 to 7 billion a year in 2022/3 - while the number of addresses has risen by four million in the same period. Ofcom’s own research in 2020 showed that a five-day (Monday-Friday) letter service would meet the needs of 97% of consumers and SMEs.  

In November 2022 we made a request to Government for a change to a five-day letters service to reflect the structural decline in letters and changing customer preferences. Being required to provide a service that customers have said they no longer need, at significant cost to Royal Mail, increases the threat to the sustainability of the USO.

Later this year, Ofcom will set out evidence explaining how demand is changing, the challenges and costs of delivering the Universal Service, potential options for change in the future and how these might be managed to ensure smooth transition to any future arrangements.

We want to work with all stakeholders including Ofcom, Government, our unions and our customers to enable change quickly and to protect the long-term sustainability of the one-price-goes-anywhere Universal Service.

You can read Ofcom’s announcement here.