
Delivering postal users' needs in a digital age Add to Your Pages
26 November 2020
Royal Mail needs to become more efficient and modernise its parcel network
New Ofcom research shines a light on changing attitudes to postal services
Reducing letter deliveries to five days a week would still meet the needs of nearly all people and businesses
But changing delivery requirements alone would not sustain the universal service in the long term
Ofcom is calling on Royal Mail to modernise its network and become more efficient, in order to sustain the universal service and keep pace with postal users' changing needs.
The postal market has changed dramatically in recent years. The number of letters people send and receive has fallen by around 5% each year since 2015, as people increasingly rely on email and other online communications.
Growth in online shopping has seen overall parcel volumes increase at a rate of around 10% per year since 2015. And these trends seem to have accelerated during the coronavirus pandemic, with Royal Mail reporting a 31% increase in its UK parcel volumes between April and September this year.
While the pandemic has made 2020 a particularly challenging year for Royal Mail, the issues facing the company due to the changing market and consumer behaviour were apparent before the pandemic started to have an impact.
Parcel delivery: Royal Mail must modernise and become more efficientOfcom's annual monitoring report on the postal market sets out data and trends within the postal sector, and examines Royal Mail's performance. In 2019/20, 2.8 billion parcels were sent and received in the UK one billion more than in 2013 in a market now worth over £10bn in revenues.
Our analysis of Royal Mail's efficiency shows that costs in the part of the business responsible for the universal service increased last year. The company failed to make efficiency gains or meet the targets it set itself for improving productivity.
Unless Royal Mail can modernise its network to adapt to parcel customers' changing needs, and operate more efficiently, the sustainability of the universal service could be at risk in the longer term.
Letter delivery: does the universal service reflect users' needs?Under legislation, the universal postal service requires Royal Mail to deliver letters six days a week (Monday to Saturday) and parcels five days a week (Monday to Friday) to every address in the UK, at a uniform price.
With the market continuing to change rapidly, Ofcom has carried out a comprehensive review of the needs of postal users across the UK, to see if the delivery requirements Royal Mail has to meet still reflect what people and businesses need today.[1]
We have asked people and businesses how they feel about a range of hypothetical changes to the universal service, to find out what would meet their needs. Any changes to the universal service's minimum requirements could only be made by Government and Parliament, but the findings give an insight into how people's attitudes to postal services have evolved.[2]
Our research found that the current six-day-a-week letter delivery requirement meets the needs of 98% of residential users and 97% of small and medium businesses (SMEs) in the UK. Reducing this to five days a week, but leaving all other elements of the service unchanged, would still meet the needs of 97% of residential and SME users.[3]
This suggests that reducing the letter deliveries requirement to five days a week would reflect postal users' reasonable needs. It would potentially allow Royal Mail to make net cost savings of around £125-225m per year.
However, Royal Mail continues to face significant financial challenges and this saving alone would not be sufficient in itself to ensure the longer-term sustainability of the universal service.
Lindsey Fussell, Ofcom's Networks and Communications Group Director, said: Our research suggests that people's needs would still be met if letter deliveries were reduced from six days a week to five.
It would ultimately be for Parliament to decide whether this change is needed. However, Royal Mail must still modernise and become more efficient, to keep pace with customers' changing needs.
Next stepsWe have researched whether the minimum requirements of the universal service reflect the reasonable needs of postal users. It would be for the UK Government to determine whether any changes are needed to these minimum requirements and to bring any proposals before Parliament.
Separately, we are reviewing the future regulatory framework for post. This will consider issues affecting the broader postal sector, as people's reliance on parcels continues to grow. For example, we will look at continuing the requirements for Royal Mail to provide wholesale access to its network, and whether extra consumer protections are required in the parcels market. We will consult on these issues next year and conclude this review in 2022.
NOTES TO EDITORS
Nationally representative samples of 4,596 UK adults and 971 businesses were surveyed at the end of 2019. This was supplemented by discussion groups across the UK. We subsequently surveyed 2,366 adults in summer 2020 to assess how far users' views may have changed as a result of the Covid-19 pandemic. Our review has focused on the minimum requirements of the universal service, but we also asked for people's views on hypothetical changes to other features. We carried out our last review of postal users' needs in 2012/13.
The Postal Services Act 2011 sets out the minimum requirements of the universal postal service and the need for the provision of that service to be financially sustainable and efficient. Ofcom can specify other features of the universal service, such as requiring the choice of a first-class and second-class serv
Most recent headlines
05/01/2027
Worlds first 802.15.4ab-UWB chip verified by Calterah and Rohde & Schwarz to be ...
04/08/2026
Dalet, a leading technology and service provider for media-rich organizations, t...
04/07/2026
April 7 2026, 19:00 (PDT) Detective Conan: Fallen Angel of the Highway Opens in...
01/06/2026
January 6 2026, 05:30 (PST) Dolby Sets the New Standard for Premium Entertainment at CES 2026
Throughout the week, Dolby brings to life the latest innovatio...
22/05/2026
Latest data reveals steady distributor rankings, a seasonal shift toward digital...
22/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
22/05/2026
Amagi Media Labs Limited (NSE: AMAGI, BSE: 544679), a cloud-native SaaS platform providing AI-enabled solutions to global media and entertainment companies, tod...
22/05/2026
An nima Post Relies on Cintel to Revive Classic Mexican Films
Brie Clayton May 22, 2026
0 Comments
Film scanner and DaVinci Resolve Studio help manage...
22/05/2026
Boris FX Sapphire Adds Optical Beauty and Hypnotic Textures
Jessie Electa Petrov May 22, 2026
0 Comments
The 2026.5 release introduces advanced defocu...
22/05/2026
Deployment Preserves Trusted Workflows While Enabling a Path to UHD and SMPTE ST 2110
Leading Argentina-based sports media company Torneos y Competencias S.A....
22/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
22/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
22/05/2026
Share
Copy link
Facebook
X
Linkedin
Bluesky
Email...
22/05/2026
Catch the latest in Irish music live from venues such as Whelan's, R is n Du...
21/05/2026
Game Creek Video Columbia and Celtic, NEP Supershooter 8 will house onsite produ...
21/05/2026
Freshly graduated, this upstart producer, director, and camera operator is already working as an AP on videoboard shows for the Philadelphia Phillies
In the li...
21/05/2026
Media Links has announced a channel partnership with Clearcast Asia, a broadcast...
21/05/2026
SiriusXM and NASCAR have announced a multi-year renewal of their broadcasting agreement. SiriusXM will continue to carry live broadcasts of every NASCAR Cup Ser...
21/05/2026
Audio-Technica held a demonstration event at its Technica House location in New ...
21/05/2026
Ateme has announced that RTL Deutschland has selected Ateme's software-based...
21/05/2026
LiveU has announced that BCC Live deployed the LU900Q intelligent production unit for the first time during the 2026 Memorial Hermann IRONMAN Texas North Americ...
21/05/2026
ATSC has announced that Mark Aitken, President of ONE Media and Senior VP of Advanced Technology at Sinclair Broadcast Group, will receive the 2026 Mark Richer ...
21/05/2026
BBright has published a technical analysis of the Media eXchange Layer (MXL), de...
21/05/2026
The Esports Foundation has announced that the 2026 Esports World Cup (EWC) will be hosted in Paris, France, from July 6 through August 23. The event marks the f...
21/05/2026
Chyron has announced PRIME Scorebug, a scorebug solution built on the PRIME Platform for on-premises sports production, and has expanded Chyron LIVE with purpos...
21/05/2026
Media Links has announced the integration of its Xscend IP transport platform with Skyline Communications' DataMiner xOps platform. The integration will be ...
21/05/2026
As live sports productions continue to demand more flexible, scalable, and cost-...
21/05/2026
In advance of this year's Sports Emmy Awards, SVG is taking a deep dive into...
21/05/2026
Hey Miami & Atlanta post-production folks!
Shade is hosting a free private suite at a Braves game (6/2) and Marlins game (6/5) and have about a dozen extra tic...
21/05/2026
The Suns and Mercury become the first NBA and WNBA teams to make games available under a single broadcast partner across both over-the-air and streaming....
21/05/2026
iPhones are part of the the regular production rotation for Friday Night Baseba...
21/05/2026
In advance of this year's Sports Emmy Awards, SVG is taking a deep dive into...
21/05/2026
Heather Matarazzo as Dawn Wiener in Todd Solondz's Welcome to the Dollhouse...
21/05/2026
Spotify has always been about helping you find something you want to listen to. And over the years, we've learned your taste and the moments that matter to ...
21/05/2026
Getting concert tickets today can feel like a race you're set up to lose.
You show up at the right time, refresh endlessly, and still miss out. Too often, ...
21/05/2026
In 2022, Spotify entered a new chapter by introducing audiobooks to our platform. Since then, we've grown our catalog to include more than 700,000 titles, e...
21/05/2026
Opening remarks
ALEX
Good morning everyone, I'm Alex [Norstr m].
GUSTAV
And I'm Gustav [S derstr m].
ALEX
Whether you've been following our j...
21/05/2026
Today, Spotify hosted our third Investor Day in New York City, offering the fina...
21/05/2026
Spotify hat heute seinen dritten Investor Day in New York City veranstaltet und der Finanzwelt tiefere Einblicke in das Gesch ft, die Produktstrategie und die l...
21/05/2026
Aujourd'hui, Spotify a organis son troisi me Investor Day New York. En pl...
21/05/2026
Oggi, a New York City, Spotify ha presentato il suo terzo Investor Day, offrendo...
21/05/2026
Hoy Spotify celebr su tercer Investor Day en Nueva York, donde ofrecimos a la c...
21/05/2026
Hari ini, Spotify menyelenggarakan Investor Day yang ketiga di New York City, me...
21/05/2026
2026 : (Investor Day) , , . ...
21/05/2026
Hoje, o Spotify realizou seu terceiro Investor Day em Nova York, oferecendo co...
21/05/2026
Spotify Investor Day ...
21/05/2026
Spotify bug n, 20'nci y l d n m m z kutlad m z bu y lda, finans camias na, i modelimiz, r n stratejimiz ve uzun vadeli vizyonumuz hakk nda daha detayl ...
21/05/2026
Two new Story Packs join orchestral instrument line-up
Sonuscore have just introduced two new additions to The Score, marking the instrument's first maj...
21/05/2026
30,000 samples, 99 presets & 504 loops
Heavyocity are well known for their hard-hitting cinematic instruments, and their latest release is no exception to t...