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Nov 19 2025

UK Postal Reform Update

By Kelly Stokes, Group Head of Operation

In May of this year, we published a postal reform update outlining proposed changes to the UK’s postal service – a national consultation aimed at reshaping how letters are collected and delivered across the country.

Those proposals have now been finalised. Following Ofcom’s decision in July 2025, the changes have taken effect, marking the most significant update to the Universal Service Obligation (USO) in over a decade. They are intended to support a more sustainable and customer-focused postal network, helping Royal Mail continue to provide a reliable, nationwide service. You can find out more about what this means for CFH and our customers below.

Postal Reform Overview

Ofcom’s decision follows a wide-ranging consultation that received over 7,000 responses from consumers, businesses and industry stakeholders. The findings highlighted how customer habits have changed – letter volumes have halved over the past decade, while parcel deliveries have grown rapidly.

To maintain a reliable, financially viable service, Ofcom concluded that postal operations must better reflect modern usage while preserving the principles of a universal, affordable network. Under the new framework, Royal Mail will continue to deliver First Class letters six days a week, from Monday to Saturday. Second Class letters will now be delivered across three alternate weekdays, Monday to Friday, while parcels remain unaffected.

What Has Changed

The reforms introduced in July have reshaped how both retail and business mail is managed. First Class continues to operate on a six-day basis, maintaining next-day delivery standards. Second Class is now delivered within three working days, Monday to Friday only.

For business mail, Standard Downstream Access (DSA) has moved from a two-day (D+2) to a three-day (D+3) delivery window, while Economy DSA now follows a five-working-day pattern. Both operate Monday to Friday. A new DSA Priority service has been launched, offering a faster two-day turnaround and operating Monday to Saturday – providing an efficient, cost-effective alternative to First Class.

These operational changes modernise how mail is processed but do not affect the reliability or security of CFH’s services. Clients can continue to post using the same processes and systems as before, with delivery times now aligned to the new standards.

Service Performance

Royal Mail’s most recent quality of service report for 2024/25 showed performance below Ofcom’s previous targets, with First Class achieving 77% against 93% and Second Class achieving 92.5% against 98.5%. In response, Ofcom has introduced revised performance measures, effective from April 2026, to better reflect modern mailing patterns while maintaining transparency and accountability.

For business mail, Royal Mail Wholesale data shows that up until the end of July 2025, Standard DSA performance averaged around 77.5% under the two-day service. Following the move to a three-day service on 28th July, performance has since improved to just above 90% by September 2025, while Economy DSA has remained consistently strong at above 95%.

This context is important, as it highlights that recent improvements reflect the revised delivery window. Organisations using CFH’s hybrid mail and managed services can continue to rely on dependable, timely delivery within these new service standards.

Looking Ahead

Only the original 35 pilot delivery offices are currently operating on an alternate-day model, and the Communication Workers Union has confirmed that no further rollout will take place during 2025 while pilot results are reviewed.

Royal Mail has also announced a national price change effective from 5th January 2026. CFH will contact clients in advance with updated rate information and advice on the most cost-efficient posting options. While the postal network continues to evolve, CFH’s service remains consistent. We’ll continue to manage, produce and deliver communications through all available services – providing continuity, reassurance and expert support every step of the way.

Our Ongoing Commitment

CFH remains actively involved with the Mail Competition Forum, Mail Users Association, Working Access Group and the Strategic Mailing Partnership, ensuring the needs of high-volume mailers are represented at the highest level.

Our priority is to help every organisation communicate effectively, efficiently and securely. We’re here to guide clients through these changes, offering practical advice on planning, scheduling and optimising mailings under the new structure. Our team is also available to review your current services and identify cost-effective mailing solutions wherever possible.

We’ll continue to work closely with our clients to ensure every communication is delivered clearly, securely and without disruption.

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