Prepare for a potential shakeup in the world of mail services, as regulator Ofcom issues a stern warning that Royal Mail is on the brink of becoming ‘unsustainable’ without significant changes.

In a report highlighting the antiquated nature of the postal service, Ofcom outlined the urgency for action to ensure Royal Mail remains relevant. Among the proposed reforms, one radical option is to trim down the traditional six-day-a-week letter deliveries to either five or even three days.

For Royal Mail to embark on such a transformative journey, the government would need to amend existing laws. However, this move could potentially save the service a substantial sum ranging from £100 million to £650 million, as per the regulator’s assessment. Ofcom is also contemplating the possibility of slowing down letter deliveries, extending the wait time to three days or more for most letters, while retaining next-day delivery options for urgent needs. This strategic shift could result in additional savings for the company, ranging from £150 million to £650 million.

Dame Melanie Dawes, Chief Executive of Ofcom, emphasised the necessity of these changes, citing a significant decline in the number of letters sent annually since 2011, coupled with a notable increase in parcel deliveries. She stated, “Postal workers are part of the fabric of our society and are critical to communities up and down the country. But we’re sending half as many letters as we did in 2011, and receiving many more parcels.”

“The universal service hasn’t changed since then; it’s getting out of date and will become unsustainable if we don’t take action. So we’ve set out options for reform so there can be a national discussion about the future of universal post. In the meantime, we’re making sure prices will remain affordable by capping the price of second class stamps,” she added.

The proposed changes open the door to a national dialogue on the future of postal services, as the industry grapples with evolving consumer behaviours and the need for financial sustainability. Stay tuned for the unfolding developments in this potential Royal Mail transformation.