Ofcom begins consultation

Universal Service reform: Ofcom begins consultation on Royal Mail’s proposal

Today, Ofcom has begun consulting with stakeholders on Universal Service reform, with a specific focus on gaining feedback on Royal Mail’s proposal for change.

The consultation will run until 10 April 2025 and Ofcom has said it will reach a final decision in the summer. The Ofcom consultation can be accessed here

A modern, sustainable and reliable postal service is crucial for our customers, our company and our people, which is why we have been campaigning for change for the past five years.

Watch this video to hear from Jenny Hall, Chief Corporate Affairs Officer, and colleagues who are part of a group helping the business work on its proposals.

A reminder of Royal Mail’s proposal for Universal Service reform 

Our proposal to Ofcom was developed following extensive feedback from customers, colleagues and other stakeholders. It reflects the fact that it is no longer sustainable to maintain a network built for 20 billion letters a year when we are now only delivering 6.7 billion. 

It includes limited changes to deliver a more efficient and more financially sustainable Universal Service, and is designed to protect what matters most to our customers:

  • First Class letters would continue to be delivered six days a week (Monday to Saturday) to recognise the importance of next-day and Saturday deliveries
  • All non-First Class letter deliveries, including Second Class, would be delivered every other weekday (Monday to Friday).

The proposal we have put forward can be achieved with regulatory change, so Ofcom could make the changes required without needing Government or Parliament to amend any laws. 

Preparing the business for potential reform 

To help us prepare for potential changes to the regulations, we will be piloting our proposal in 37 delivery offices to ensure everything runs smoothly. The first one is starting in February and the rest will be rolled out gradually over the coming months.  

We will only look to implement our 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. 

If reform goes ahead, it will represent one of the most significant change activities we have ever undertaken. We would encourage all colleagues to read and understand our proposal and look out for opportunities to learn more about how it could affect you and your function.

You can find more information at myroyalmail.com/universalservice including an updated Q&A.

30 Jan 2025