Published by Global Banking & Finance Review®
Posted on July 10, 2025
2 min readLast updated: January 23, 2026
Ofcom revises Royal Mail's delivery targets and launches a pricing review to address rising stamp prices and improve service efficiency.
(Reuters) -Britain's media regulator set new minimum acceptable delivery deadlines for Royal Mail on Thursday, changed some existing targets to prevent long delays, and launched a review of pricing and affordability to address concerns of rising stamp prices.
Royal Mail, which is trying to modernise its business as it shifts its focus to parcels, has been fined roughly $20 million over the last two years by Ofcom for failing to meet delivery targets.
"Urgent reform is needed for the universal service to survive," Ofcom said in a statement, laying out revised goals for Royal Mail that the regulator said would help the postal service save up to 425 million pounds ($578.3 million).
Royal Mail must now ensure that 99% of mail is delivered no more than two days late. Delivery targets for First Class mail have been cut from 93% to 90% delivered next-day and for Second Class mail from 98.5% to 95% delivered within three days, Ofcom said.
From July 28, Royal Mail will be allowed to deliver Second Class letters on alternate weekdays while still aiming for deliveries within three working days of collection, the regulator added.
"Our research suggests that affordability and reliability are more important to people than speed of delivery, but they value having a next-day service available for when they need to send the occasional urgent item," Ofcom said.
It plans to launch a consultation to follow up on its pricing and affordability review next year.
In a response to the new measures, Martin Seidenberg, Group CEO of Royal Mail's parent company International Distribution Services, said he welcomed the Ofcom announcement.
"It is good news for customers across the UK as it supports the delivery of a reliable, efficient and financially sustainable universal service," he said in a statement.
($1 = 0.7349 pounds)
(Reporting by Shashwat Awasthi in Bengaluru; Editing by Mrigank Dhaniwala, Rashmi Aich and Joe Bavier)
Ofcom has mandated that Royal Mail must ensure that 99% of mail is delivered no more than two days late. Additionally, the targets for First Class mail have been reduced from 93% to 90% for next-day delivery.
Ofcom is launching a review of pricing and affordability to ensure the universal postal service remains viable. This review is part of a broader effort to modernize Royal Mail's operations.
Starting July 28, Royal Mail will be permitted to deliver Second Class letters on alternate weekdays while still aiming for deliveries within three working days of collection.
Royal Mail has faced fines totaling roughly $20 million over the last two years for failing to meet its delivery targets set by Ofcom.
Martin Seidenberg, Group CEO of Royal Mail's parent company, welcomed Ofcom's announcement, stating it is good news for customers as it supports a reliable and financially sustainable universal service.
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