Finance
UK's Ofcom proposes changes to Royal Mail's obligations
Published by Global Banking & Finance Review®
Posted on January 30, 2025
2 min readLast updated: January 26, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on January 30, 2025
2 min readLast updated: January 26, 2026
Ofcom proposes changes to Royal Mail's obligations, including alternate weekday delivery for second-class letters, aiming for significant cost savings.
(Reuters) - Britain's Ofcom has proposed changes to Royal Mail's obligations including so-called second-class letters delivered on alternate weekdays instead of Saturdays, the regulator said on Thursday.
The Royal Mail, which has been trying to transform and modernise its business as it shifts its focus to parcels, has a legal obligation to deliver letters Monday through Saturday and parcels Monday to Friday as well as offer two delivery speeds - first class for next day and second class for within three days.
Ofcom, which is the regulatory authority for broadcasting, telecommunications, and postal services, said the proposals are expected to help Royal Mail realise annual net cost savings of between 250 million pounds and 425 million pounds ($310.9 million and $528.5 million).
"As Ofcom's analysis shows, it is no longer financially sustainable to maintain a network built for 20 billion letters when we are now only delivering 6.7 billion," Royal Mail said in a separate statement, adding that the regulator has recognised the "urgent need" for change.
Royal Mail had urged Ofcom last year to introduce reforms by April 2025 at the latest.
The regulator also said that Royal Mail must invest in its network to become more efficient and added that first class letters would remain at six days a week, and that the price cap on second class stamps would continue.
($1 = 0.8041 pounds)
(Reporting by Aby Jose Koilparambil in Bengaluru; Editing by Sonia Cheema and Mrigank Dhaniwala)
The article discusses Ofcom's proposed changes to Royal Mail's delivery obligations, focusing on cost savings and efficiency.
How will the proposed changes affect Royal Mail's delivery schedule? Second-class letters may be delivered on alternate weekdays instead of Saturdays.
What are the expected financial benefits? The changes could save Royal Mail between 250 million and 425 million pounds annually.
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