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 ...
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...
01/05/2026
January 5 2026, 18:30 (PST) NBCUniversal's Peacock to Be First Streamer to ...
01/04/2026
January 4 2026, 18:00 (PST) DOLBY AND DOUYIN EMPOWER THE NEXT GENERATON OF CREATORS WITH DOLBY VISION
Douyin Users Can Now Create And Share Videos With Stun...
21/01/2026
Share Share by:
Copy link
Facebook
X
Linkedin
Pinterest
Bluesky
Email...
21/01/2026
Share Share by:
Copy link
Facebook
X
Linkedin
Pinterest
Bluesky
Email...
21/01/2026
Share Share by:
Copy link
Facebook
X
Linkedin
Pinterest
Bluesky
Email...
21/01/2026
Share Share by:
Copy link
Facebook
X
Linkedin
Pinterest
Bluesky
Email...
20/01/2026
SVG Sit-Down: BitFire's Jim Akimchuk on the Future of Cloud, Remote, Softwar...
20/01/2026
From architecture to reality: What CBC's Milano Cortina 2026 workflows tell ...
20/01/2026
Milano Cortina 2026: Making the Winter Olympics and Paralympics workflow work fo...
20/01/2026
Countdown to Milano Cortina 2026: SVG Launches SportsTechLive Blog in Lead-up to...
20/01/2026
Grand finale: Rally Saudi Arabia pushes WRC to make the most of cameras and dron...
20/01/2026
State of Change: What's Happening in the Remote-Production Business?NEP Group, Game Creek Video, Dome Productions, Mobile TV Group, Program Productions exec...
20/01/2026
CFP National Championship 2026: A Look Back at SVG's Complete CoverageGo behind the scenes with ESPN, Game Creek Video, Van Wagner, and the champion Indiana...
20/01/2026
The Gotham, Film Independent, and Creators Coalition on AI Join Alliance
by Michelle Satter, Founding Senior Director, Sundance Institute's Artist Programs...
20/01/2026
The National Film and Video Foundation (NFVF), an agency of the Department of Sp...
20/01/2026
December, the first month of winter and the holiday season, has traditionally encouraged families to spend time together in front of the television. During this...
20/01/2026
During December, streaming's share of TV viewing in Mexico settled at 24.3%, an increase of 0.1 share points from the previous month.
Disclaimer: YUMI TV,...
20/01/2026
Christmas Day is Most-Streamed Day Ever with 55 Billion Viewing Minutes, led by...
20/01/2026
Share Share by:
Copy link
Facebook
X
Whatsapp
Pinterest
Flipboard...
20/01/2026
Disguise and ASB GlassFloor today announced a strategic partnership that turns the arena floor into a fully customizable interactive digital surface. This will ...
20/01/2026
Last summer, ITV celebrated the tenth anniversary of its popular reality dating show, Love Island. To ramp up the excitement of series 12 (launched in the UK on...
20/01/2026
Berklee's Mark Ethier Named One of SPIN's Most Influential People in Mus...
20/01/2026
Share Share by:
Copy link
Facebook
X
Whatsapp
Pinterest
Flipboard...
20/01/2026
Share Share by:
Copy link
Facebook
X
Whatsapp
Pinterest
Flipboard...
20/01/2026
Emergent, a provider of AI-powered media production solutions, today announced its presence at ISE 2026 in Barcelona, taking place February 3 6, where it will u...
20/01/2026
Back to All News
Netflix and Warner Bros. Discovery Amend Agreement to All-Cash Transaction
Business
20 January 2026
Global
Link copied to clipboard
All-C...
20/01/2026
Back to All News
Now You Can Play a Role in Our Live Events With Real-Time Voting
Elmar Nubbemeyer
VP, Member Product
Product
20 January 2026
Global
Link...
19/01/2026
CFP National Championship 2026: Indiana Football's Digital Crew Generate Hyp...
19/01/2026
CFP National Championship 2026: Van Wagner Relies on Experience for Indiana-Miam...
19/01/2026
CFP National Championship 2026: Game Creek Video Fields Premiere IP Compound for...
19/01/2026
CFP National Championship 2026: For a Slew of Studio Shows, ESPN Turns Hard Rock...
19/01/2026
CFP National Championship 2026: ESPN's Sweeping Live Game Production Leverag...
19/01/2026
The new L3Harris NOVA binocular system is the every-soldier goggle' - and the beginning of a new era for night-vison capability....
19/01/2026
The Majority of Those Surveyed Prefer to Buy Brands Who Advertise in Content Tha...
19/01/2026
Back to All News
Straight to Hell' Sets April 27 Premiere: Teaser Trailer,...
19/01/2026
New Workflow Enhancements for All Broadcast Pix Systems, Plus 4-Channel ISO Recording for Hybrid and Roadie Tyngsboro, Mass. - January 2025 - Broadcast Pix ann...
19/01/2026
Monday 19 January 2026
Sky News reinvents News at Ten for the modern audience with The Wrap
Sky News today announces The Wrap, a bold evolution of its 10pm ou...
19/01/2026
Back to All News
Netflix Announces the Series Nights & Days, Directed by Kamila...
19/01/2026
DPA Microphones is striking a new chord in piano miking with the debut of its DPK2015 Piano Stereo Kit, an out-of-the-box, plug-and-play miking solution that ta...
19/01/2026
DPA Microphones will present its 4099 CORE Instrument Microphone and redesigned...
19/01/2026
Trianel relies on Arvato Systems for future-proof data center operations
Moving to the cloud: Arvato Systems implements extensive IT migration project
Migrat...
19/01/2026
Celebrating 21 Years of the RT Choice Music Prize
RT Choice Music Prize
In association with IMRO and IRMA
Irish Album of the Year 2025 - Shortlist Announce...
18/01/2026
January 18 2026, 21:30 (PST) Dolby Cinema Arrives in Bengaluru: Dolby Laborator...
17/01/2026
Lightware, an industry leader in signal management, is helping to elevate the Google Meet experience with the introduction of an integration with Taurus UCX. Th...
17/01/2026
Clear-Com announced a strategic partnership with NETGEAR AV to offer four high-performance networking switches as original equipment manufacturer (OEM) solutio...
17/01/2026
QuickLink, a leading provider of award-winning video production and remote guest contribution solutions, today announced a new U.S. distribution partnership wit...
17/01/2026
NUGEN Audio announces the latest evolution of MasterCheck, its industry-trusted optimization plug-in for cross-platform mastering and loudness verification. Des...
Delivering postal users' needs in a digital age Add to Your Pages 
