Big changes could be coming to the way post is delivered across the UK. As the national mail service undergoes a major review, the outcome could have an impact on both households and businesses. In this update, I’ll break down what’s being proposed and explain what this could mean for our services.
The UK postal system is on the verge of its most significant transformation in over a decade. In response to financial pressures and declining letter volumes, Royal Mail and industry regulator Ofcom have moved to modernise the Universal Service Obligation (USO) - the framework that guarantees mail delivery to every UK address six days a week.
Following a public and industry consultation launched in April 2024, Ofcom published formal reform proposals in January 2025. These proposals aim to reshape the structure of UK postal services, particularly how letters and bulk business mail are handled. The consultation closed in April 2025, with final decisions now expected in July of 2025.
The USO currently requires Royal Mail to deliver letters six days a week, from Monday to Saturday, regardless of location. However, as letter volumes have continued to decline and operational costs have increased, the long-term sustainability of this model has been called into question. Royal Mail has argued that reform is necessary to ensure the postal service can adapt to modern needs while remaining financially viable.
Although the USO primarily governs stamped retail mail sent by individuals and small businesses, the majority of UK mail (over 63% in fact) is generated by larger organisations, using business bulk mail services. These bulk services are not formally included within the scope of the USO, but they rely on the same national delivery infrastructure. As such, any changes to Royal Mail’s operations will inevitably impact how business mail is processed and delivered.
Under Ofcom’s proposed changes, several adjustments to service levels have been outlined. Second Class retail and Standard Downstream Access (DSA) mail would no longer be delivered six days a week and instead move to an alternate weekday schedule, Monday to Friday only. Standard DSA mail would shift from a two-day turnaround after handover (D+2) to a three-day window (D+3), reflecting changes to how Royal Mail manages its network capacity.
First Class stamped mail would retain a six-day delivery pattern, with Royal Mail now routing these items through its parcel network on what it terms a “light delivery day.” However, this operational shift has already resulted in significant price increases, with some business mail letter rates rising by over 60% as of March 2025.
For Economy DSA mail, which currently operates on a D+5 basis (delivery within four days of handover), Ofcom proposes that deliveries be restricted to weekdays only, removing Saturday delivery from the schedule. A new DSA Priority service has also been proposed. This would provide a faster, premium bulk mail option that mimics First Class delivery standards, with mail delivered within two days of handover and continuing to operate Monday to Saturday. This service would be available for Mailmark letters and large letters, excluding advertising mail and postcards - and would be marked with a '1' on the indicia to indicate its priority level.
The final outcome of Ofcom’s consultation is expected in July 2025. These decisions are likely to reshape how both personal and business mail is delivered across the UK, with broad implications for cost, delivery timing, and operational planning. Businesses that depend on bulk mailing services may need to reassess their mailing strategies once the reforms take effect.
Industry providers, including CFH, have played an active role throughout the consultation period as members of key groups such as the Mail Competition Forum and the Mail Users Association. These organisations have worked to ensure that the perspectives and needs of high-volume mailers are represented in the regulatory process.
We know how crucial these postal changes are to your communication plans, and we’re committed to keeping you updated as the situation evolves. While Ofcom’s final decision is expected in July 2025, it’s business as usual in the meantime. We’ll continue to offer our full range of services, including First Class, Standard DSA, and Economy DSA. If the proposed DSA Priority service becomes a regulated option, we’ll make it available as a cost-effective alternative to First Class.
You can count on us to provide clear guidance and support as the details unfold. Further updates will be provided once Ofcom’s final recommendations are announced.
