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Jul 06 2026

July 2026 USO Reform Update

By Kelly Stokes, Group Head of Operation

This update outlines CFH’s position on the latest developments surrounding Royal Mail’s Universal Service Obligation reform, following our previous website update in November 2025.

Since then, Royal Mail’s Universal Service reform has continued to progress. As of June 2026, the new operating model has entered its national rollout phase, with the revised delivery model being rolled out across Royal Mail’s wider network.

How Things Stand

In April 2026, Royal Mail and the Communication Workers Union reached an agreement on the deployment of the Universal Service changes. This covered the revised delivery model, governance and safeguards, investment in additional duties, and plans to move around 6,000 postal workers from part-time to full-time roles.

The phased national rollout began in May 2026, starting with 240 delivery offices. Royal Mail is expected to continue expanding the new operating model across its wider network over the coming months, with additional delivery offices being brought into scope each week.

Full implementation is currently planned before the Christmas 2026 peak period. The primary aim is to create a more sustainable postal model while continuing to protect the principles of a universal, affordable and reliable national service.

What’s Changing?

First Class mail will continue to be delivered six days a week, Monday to Saturday. This means urgent mailings should continue to be sent via the most appropriate priority service where speed remains critical.

Second Class and Standard DSA mail will move to an alternate weekday delivery model. In practice, post will still be delivered Monday to Saturday, but the type of mail delivered will vary depending on the day. Standard and Economy DSA mail will no longer be delivered on Saturdays, while parcels will continue to be delivered up to seven days a week. Collections will also continue to take place six days a week.

For organisations, this means non-urgent mailings may need to allow for the new delivery schedule, while urgent communications may require closer review when selecting the correct postal service.

Service Performance and Improvement Plans

Service performance has remained a key part of the postal reform discussion. Previous Royal Mail quality of service reports showed performance below Ofcom’s former targets, particularly for First Class delivery. In response, Royal Mail has committed to investing £500 million over the next five years to support a more sustainable service.

As part of the rollout, Royal Mail has also committed to tracking performance against a series of improvement milestones. Over the first year of deployment, the aim is to improve First Class next-day delivery to around 85% by January 2027, before reaching 90% by April 2027.

Access Standard delivery is also expected to improve, moving towards approximately 93% by January 2027 and 95% by April 2027. The access economy is already performing close to target, with Royal Mail aiming to maintain a service level of 97.5%.

What This Means For CFH Clients

We recognise that Royal Mail service quality has faced significant challenges in recent years. However, the agreement reached with the Communication Workers Union, alongside the continued focus from Ofcom and the government, marks an important step in the reform process.

Throughout this period of change, CFH’s systems, processes and production services will remain consistent. Clients can continue to use our wider communication solutions as normal, with delivery timings aligned to the latest Royal Mail standards.

The main consideration for organisations will be planning. Time-sensitive letters may need to be reviewed carefully to ensure the correct postal service is selected, while less urgent mailings may continue to benefit from the cost-effectiveness of Standard DSA and Economy DSA.

An Important Period

As the new operating model is introduced, Royal Mail will be working towards its newly agreed quality of service targets over the next 12 months. This comes amidst a period of continued scrutiny, with Ofcom opening an investigation in June 2026 into Royal Mail’s performance during the 2025/26 period.

CFH will remain actively involved with industry groups, including the Mail Competition Forum, Mail Users Association, Working Access Group and the Strategic Mailing Partnership. We’re optimistic that Royal Mail will make meaningful progress against its improvement milestones and that the reform programme will support a more reliable and sustainable long-term postal service for organisations across the UK.

In the meantime, our team is available to provide practical guidance around mailing schedules, service selection and cost-effective delivery routes, helping clients communicate clearly, securely and without disruption. Please don’t hesitate to reach out with any queries.

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