Ofcom, the industry regulator, has given Royal Mail the green light to cease Saturday deliveries for second-class post and transition to an alternate weekday service starting later this month. From July 28, Royal Mail will be permitted to discontinue its six-day-a-week service for second-class letters, while maintaining Monday to Saturday deliveries for first-class post. Despite the shift to every other weekday delivery, Ofcom stated that the three-working-day delivery target for second-class letters would remain unchanged. These modifications, which follow a comprehensive consultation, are projected to save Royal Mail between £250 million and £425 million annually, Ofcom reports. While it is unlikely that Royal Mail will implement these changes across all UK second-class letter deliveries this month, the company plans to gradually introduce them, having already initiated pilot schemes in 37 of its 1,200 delivery offices. The industry watchdog emphasised the necessity of reforming the so-called universal service to ensure its survival, given the decline in letter volumes and the escalating cost of stamps. Ofcom also announced a review of stamp prices due to affordability concerns, with a public consultation slated for next year. It also revealed that delivery targets would be reduced from 93 percent to 90 percent for next-day first-class post and from 98.5 percent to 95 percent for second-class post within three days. Ofcom has announced the introduction of a new "enforceable" backstop delivery target, mandating that 99 percent of mail must be delivered no more than two days late. Natalie Black, Ofcom's group director for networks and communications said: "These changes are in the best interests of consumers and businesses, as urgent reform of the postal service is necessary to give it the best chance of survival." She also emphasised the need for Royal Mail to step up, saying: "But changing Royal Mail's obligations alone won't guarantee a better service – the company now has to play its part and implement this effectively." Black assured that Ofcom would ensure transparency and consumer benefits, saying: "We'll be making sure Royal Mail is clear with its customers about what's happening, and passes the benefits of these changes on to them." Martin Seidenberg, group chief executive of Royal Mail's parent company International Distribution Services (IDS), expressed his approval of Ofcom's decision, which he believes will benefit UK customers. He said: "It is good news for customers across the UK as it supports the delivery of a reliable, efficient and financially sustainable universal service." Royal Mail made a loss of £348 million in 2023-24, even though the cost of a first class stamp now stands at £1.70 after big hikes in recent years. These regulatory changes come in the wake of significant penalties imposed on Royal Mail for subpar service, including an investigation initiated in May after the company failed to deliver more than three-quarters of first-class post on time lastyear. Ofcom has penalised Royal Mail with a hefty £16 million fine for not meeting its postal delivery targets in the past two years. Citizens Advice said Ofcom had “missed an opportunity” for more significant changes to the postal service, while the Liberal Democrats said Royal Mail had been let “off the hook”. Tom MacInnes, director of policy at Citizens Advice, said: “Royal Mail has a woeful track record of failing to meet delivery targets, all the while ramping up postage costs. “Today, Ofcom missed a major opportunity to bring about meaningful change.” Liberal Democrats business spokeswoman Sarah Olney added: “This is a deeply worrying decision that could leave countless people who rely on these deliveries in the lurch.” “Ofcom needs to think again and not let Royal Mail off the hook at the expense of people who expect the bare minimum of their post arriving on time,” she said. The Government said it was “right” for Ofcom to look at postal reforms. “We now need RoyalMail to work with unions and posties to deliver a service that people expect, and this includes maintaining the principle of one price to send a letter anywhere in the UK,” a government spokesperson added. This development comes after the recent £3.6 billion acquisition of Royal Mail's parent company IDS by Czech tycoon Daniel Kretinsky, which was finalised in June following Government approval at the close of 2024. Mr Kretinsky, who will serve as the new chairman of Royal Mail, has committed to upholding the Universal Service Obligation (USO) subsequent to the takeover.