Royal Mail will be allowed to axe Saturday deliveries for second-class postal deliveries, the industry regulator has determined.
Ofcom has announced reform to the Universal Service Obligation (USO) is needed as Britons are sending fewer letters every year.
As a result of this trend, stamp prices have been continuously rising as the cost of delivering letters increases.
Following Ofcom's consulultation, Royal Mail to be able deliver Second Class letters on alternate weekdays from July 28, still being within three working days of collection from Monday to Friday.
Royal Mail will be allowed to axe second-class deliveries for Saturday deliveries
GETTY IMAGESNatalie 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.
"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. 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.
"As part of this process, we’ve been listening to concerns about increases in stamp prices. So we’ve launched a review of affordability and plan to publicly consult on this next year."
Under the current one-price-goes-anywhere USO status quo, Royal Mail is obligated to deliver post six days a week, from Monday to Saturday, and parcels on five from Monday to Friday.
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Royal Mail will be undergoing changes to the way it carries out deliveries
PAWith this approved changes to deliveries, Ofcom estimates Royal Mail could realise annual net cost savings of between £250million and £425million if implemented successfully.
The regulator has told Royal Mail to hold regular meetings with consumer bodies and industry groups to hear about the experiences of people and businesses as it implements these changes.
As well as these reforms , the regulator has approved changes to the postal delivery service's delivery targets, which would see First Class mail targets drop from 93 per cent to 90 per cent delivered next-day.
Furthermore, Second Class mail targets will slip from 98.5 per cent to 95 per cent being delivered within three days, which Ofcom cites is high by international standards.
Ofcom has approved the changes to deliveries
PAAs part of its consultation, Ofcom recognised that many people have experienced long delays where letters have taken weeks to arrive.
In order address this issue, the regulator has set Royal Mail new enforceable backstop targets so that 99 per cent of mail has to be delivered no more than two days late.
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Martin Seidenberg, the group chief executive officer at Royal Mail's owner International Distribution Services (IDS), broke down what this move from Ofcom means for services.
He said: "We welcome today’s announcement from Ofcom. It is good news for customers across the UK as it supports the delivery of a reliable, efficient and financially sustainable Universal Service.
"It follows extensive consultation with thousands of people and businesses to ensure that the postal service better reflects their needs and the realities of how customers send and receive mail today."