Future of Royal Mail universal service obligation under consideration

Category: Operations
Future of Royal Mail universal service obligation under consideration

Ofcom is laying the groundwork for providing advice on how Royal Mail’s universal service obligation might need to evolve to better reflect the changing needs of postal users.

The universal service obligation has been unchanged since the implementation of the current framework under the Postal Services Act 2011. However, consumer demand for postal services has changed substantially, and continues to do so.

Currently, the universal service obligation 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 affordable prices that are uniform throughout the UK. These minimum requirements are set out in legislation, and any changes to them can only be made by the UK Government and Parliament.

The UK is not alone in seeing user demands change, with an increasing reliance on parcels and a decline in letter volumes. Many countries around the world are reviewing how their universal postal service should adapt in line with consumers’ needs, environmental concerns and the need to ensure that everyone is able to participate fully in society, while others have already scaled back the scope of their universal service.

So, Ofcom is gathering evidence on how the universal service might need to evolve to more closely meet consumer needs.

Ofcom will set out this evidence in detail later this year – explaining how demand is changing, the challenges and costs of delivering the universal service, potential options for change in the future and how these might be managed to ensure smooth transition to any future arrangements. They will encourage input from interested parties after the publication.

It would ultimately be for the UK Government and Parliament to determine whether any changes are needed to the minimum requirements of the universal service obligation.

Leave a Reply

Your email address will not be published. Required fields are marked *

RELATED POSTS..

First Class Stamps to cost £1.25 from 2nd Oct

First Class Stamps to cost £1.25 from 2nd Oct

How your Green Surcharge will get Royal Mail to Net-Zero

How your Green Surcharge will get Royal Mail to Net-Zero

Royal Mail slash Delivery Office opening hours New Royal Mail Surcharges hit retailers

New Royal Mail Surcharges hit retailers

Royal Mail launches safe place delivery preferences in app

Royal Mail launches safe place delivery preferences in app

Royal Mail parcel volume down 19%

Royal Mail parcel volume down 19%

ChannelX Guide...

Featured in this article from the ChannelX Guide – companies that can help you grow and manage your business.

Latest

Take a look through a selection of the latest articles on ChannelX

Register for Newsletter

Receive 5 newsletters per week

Gain access to all research

Be notified of upcoming events and webinars