Saturday letter delivery rules could be relaxed

Rules around letter deliveries on Saturdays could be relaxed as the regulator looks for ways to make the postal service "better reflect" customers' needs.

Ofcom said the number of letters sent had sharply declined in recent years.

In light of that, it said it was collecting evidence on how the Universal Service might need to evolve.

The Universal Service states that letters must be delivered from Monday to Saturday.

Royal Mail has been asking the government to allow it to stop letter deliveries on Saturdays.

The business said last November that it wanted to move from a six-days-a-week letter delivery to five, from Monday to Friday only.

Ofcom said the universal service has not changed since the implementation of the current framework under the Postal Services Act 2011. However, consumer demand for postal services has changed "substantially", it said.

It said that letters remain important to many people, especially those who are less able to use electronic means of communications and transactions.

"However, the number of letters we send and receive has declined by 46% over the last decade, as people and businesses increasingly use digital alternatives. And as the number of letters delivered each day falls, the average cost of delivery is increasing," it said.

Ofcom said that while letters have declined, parcel deliveries have become increasingly important to people's daily lives.

It said that it would be collecting evidence on how the universal service might need to evolve to more closely meet consumer needs.

"We 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," Ofcom said.

It would ultimately be for the government and parliament to determine whether any changes are needed to the minimum requirements of the universal service, it added.

On Tuesday, Royal Mail announced the price of a first class stamp will rise by 15p from the start of October.

Royal Mail said a first class stamp would now cost £1.25, blaming the decision on "increasing cost pressures" and a "challenging" economic backdrop.

However, there will be no change to the price of second class stamps.