Ofcom Publishes Its Requirements For Royal Mail Deliveries

Ofcom (the Office of Communications) is a statutory public corporation owned by the public and accountable to Parliament. It was established by the Office of Communications Act 2002 and granted its powers under the Communications Act 2003.

It is funded by fees from the industries it regulates and by Government grants.

As far as Royal Mail is concerned, Ofcom is responsible for implementing and enforcing laws related to communications and it sets delivery targets.

If Royal Mail was a public corporation then its aims would align with Ofcom’s. But Royal Mail is a private venture and its aim is to maximise profits for its shareholders.

Three years ago Royal Mail’s Parent Company IDS asked the Government to agree a five day letter delivery. That was then, and In April 2025, IDS was acquired by EP Group, a Czech-based company owned by Daniel Křetínský, for £3.6 billion after agreeing legally binding undertakings with the UK government.

And now Ofcom has published the obligations Royal Mail must meet.

In its decision Ofcom sets out that since 2011, Royal Mail has been required under the universal service obligation to deliver First and Second Class letters six days a week. In that time the number of letters sent each year has more than halved, which increases the cost of delivering each letter, and Royal Mail has lost hundreds of millions of pounds.

Recognising this, Ofcom has agreed that Royal Mail will continue to be required to deliver First Class letters the next working day, Monday to Saturday, and there will continue to be a cap on the price of a Second Class stamp.

However, Royal Mail will only be required to deliver Second Class letters on alternate weekdays – still within three working days of collection – Monday to Friday.

Ofcom estimates Royal Mail could save £250m and £425m with this change, so we shall see how it pans out.

Royal Mail?

I think it is a fair question to ask to what extent Royal Mail deserves its ‘royal’ title. Its obligations are set by Parliament, but it is a private company beholden to shareholders. How royal can it be when it is riding two horses or serving two masters?