Royal Mail Reforms Confirmed: What They Mean for the Future of Mail

Ofcom has confirmed a package of Royal Mail reforms that aim to modernise the UK postal service in line with current demand, falling letter volumes, and rising operational costs. The DMA supports these changes as a proportionate and necessary update to ensure a reliable and sustainable mail network for both consumers and businesses.

Martin Seidenberg, Group Chief Executive Officer, International Distribution Services said:

“We welcome today’s announcement from Ofcom. It is good news for customers across the UK as it supports the delivery of a reliable, efficient and financially sustainable Universal Service. It follows extensive consultation with thousands of people and businesses to ensure that the postal service better reflects their needs and the realities of how customers send and receive mail today.”

The most significant reform to the universal postal service is the move to a five-day delivery model for Second Class letters and most business mail. Under the new system, these services will now be delivered Monday to Friday only, while First Class letters will continue to be delivered six days a week. Alongside this, Ofcom has revised Royal Mail’s performance targets—setting a 90% next-day delivery standard for First Class and 95% within three working days for Second Class items.

To reinforce delivery reliability, Ofcom has also introduced new ‘tail of mail’ targets. These will require Royal Mail to deliver 99% of First Class letters within three days (D+3) and 99% of Second Class letters within five days (D+5). These measures provide greater clarity around delivery windows, particularly for businesses using the postal service to support customer communications and direct mail campaigns.

The changes also apply to Royal Mail’s wholesale access products—DSA Priority (D+2), DSA Standard (D+3), and DSA Economy (D+5)—which are commonly used for business and advertising mail. Only DSA Priority will retain Saturday delivery. The shift to weekday-only delivery for DSA Standard and Economy reflects operational reality, aligning delivery frequency with demand while maintaining choice for bulk mailers.

Royal Mail estimates the reforms will generate annual savings of £250–£425 million. The DMA supports these efficiencies, particularly if they help reduce future price pressures and contribute to a more stable operating environment for business mail users. In recent years, pricing volatility has created barriers for organisations seeking to invest in mail as a marketing and communications channel. Increased efficiency has the potential to improve service quality and affordability.

In addition, Ofcom has committed to a formal review of stamp prices and postal affordability, alongside changes to access regulations that ensure transparency and fair pricing across all service levels. These steps will help create a modern postal framework that supports both universal service obligations and the commercial needs of business mail users.

DMA Director of Policy and Public Affairs, Chris Combemale, said:

The DMA views these regulatory changes as a necessary evolution for the UK postal system. They provide the opportunity to improve delivery reliability, clarify service expectations, and strengthen the long-term viability of mail as a trusted communications channel. The DMA will continue to work with Royal Mail and Ofcom to support effective implementation.