Royal Mail Reform Update 2025: New Algorithm, Same Uncertainty

Introduction

In July 2025, Ofcom confirmed changes to the UK postal service that marked the most significant shift in over a decade. Royal Mail has since introduced a new algorithmic delivery model while pausing wider rollout of its alternate-day delivery plan until 2026.

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The result? Greater operational complexity and continued uncertainty for organisations that depend on timely, compliant communication.

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This article explains what has changed, why it matters, and how hybrid communication can help your business stay resilient.

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In July, we reported on the upcoming Royal Mail Postal Reform. You can read that original article here for full background.”

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A Quick Recap, What Was the Royal Mail Reform?

The goal of USO reform

Royal Mail is bound by the Universal Service Obligation (USO) to deliver letters six days a week at a uniform price.
Yet, letter volumes have more than halved since 2011, according to both Ofcom and Royal Mail (ofcom.org.uk, royalmail.com).
Maintaining the same network with fewer letters has pushed the cost per item steadily upward.

The original proposal

The initial reform plan aimed to:

• Deliver 1st Class letters six days a week
• Deliver 2nd Class and Economy letters every other weekday (Monday – Friday)
• Remove Saturday delivery for non-priority items
• Introduce efficiency measures and reduce emissions

What’s Changed in 2025

Reform timeline paused until 2026

In October 2025, the Communication Workers Union (CWU) confirmed that Royal Mail will not expand the Alternate Day Delivery (Optimised Delivery Model) beyond its 35 pilot offices until 2026.
National rollout is on hold while pilot results and operational data are reviewed.

The new algorithmic delivery model

While reform is paused, Royal Mail introduced an interim algorithm to coordinate delivery frequency:

• Mail handed to Royal Mail on D+1
• If coincident mail exists (e.g., a 1st Class and an Economy letter for the same address), both are delivered on D+2
• If not, the item is delivered on D+3
  This ensures delivery within product targets while reducing the number of separate delivery visits.

Pilot office differences

The 35 pilot sites continue to test the Day A / Day B model: roughly half of addresses receive mail on one day, the remainder the next, Monday to Friday.

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Saturday deliveries remain active for Access Mail but not in pilot areas.

Why the Reform Matters

For Royal Mail

The reform is designed to make the postal network financially sustainable. However, performance remains under pressure: Ofcom’s 2025 Quality of Service report showed First Class on-time delivery at 77 percent (target 93 percent) and Second Class at 92.5 percent (target 98.5 percent).

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Royal Mail received a £21 million fine for these breaches (Ofcom QoS Investigation 2024-25).

For businesses and public bodies

Extended delivery windows mean that time-sensitive documents such as invoices, regulatory notices, and appointment letters may now take longer to arrive. This creates risk for sectors with statutory or contractual delivery requirements, including finance, healthcare, and local government.

For consumers

Customers may experience longer waits for non-priority mail and uncertainty about which days delivery occurs.
Clear communication from businesses will be essential to maintain trust.

Service Quality and Regulatory Context

Performance snapshot (2024-25)

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Legal and compliance notes

The USO is defined in the Postal Services Act 2011 and regulated by Ofcom.

Businesses must ensure that their internal SLAs and customer commitments reflect longer postal timelines. Where regulated correspondence is delivered by post, proof of dispatch and digital audit trails become increasingly important.

How Hybrid Communication Bridges the Gap

What hybrid mail means

Hybrid communication merges physical and digital delivery channels.
Letters are printed, posted, or converted to secure email, SMS, or portal messages, all managed from one platform.

Key benefits

• Continuity – deliver critical messages even when postal schedules change.
• Compliance – retain audit trails, encryption, and certified delivery evidence.
• Cost control – optimise between print and digital to balance efficiency and reach.

Practical examples

• Banks sending statements digitally while maintaining printed copies for regulation.
• Councils combining printed notices with SMS reminders.
• Healthcare providers posting appointment letters and same-day digital confirmations.

Human review note: confirm examples align with Micom client verticals or anonymised use cases before publishing.

Preparing for 2026 and Beyond

1. Audit your communication mix

Identify where your organisation still depends on physical mail and where delays could affect compliance or customer satisfaction.

2. Adopt scalable hybrid infrastructure

Platforms like Micom CX and Micom CCM enable organisations to send regulated and marketing messages securely across print, email, and SMS, backed by ISO 27001, ISO 9001, and Cyber Essentials certification.

3. Stay informed

Follow Ofcom’s updates and Micom’s insight hub for confirmed reform dates, new delivery targets, and best-practice guidance.

FAQs

When will Royal Mail fully implement postal reform?
Rollout of alternate-day delivery is paused until 2026 while pilot results are reviewed.‍

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What is the new Royal Mail algorithm?
It groups coincident mail items to deliver them together, optimising D+2 and D+3 routes.‍

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Will Saturday deliveries end?
Saturday delivery continues for Access Mail but is excluded from pilot sites.‍

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How does this affect regulated mail?
Longer delivery windows may breach compliance obligations. Hybrid systems maintain documented, timely delivery.

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‍What should organisations do now?
Adopt flexible hybrid communication systems to stay compliant and connected.

Conclusion. Uncertainty Is the New Normal

Royal Mail’s reform journey shows how quickly the communication landscape can change. With rollout delayed and service levels fluctuating, businesses need reliability they can control.

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Micom provides that certainty.
Our hybrid communication platform helps organisations manage cost, compliance, and customer trust, regardless of what happens next in the postal network.‍

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Speak to our team to prepare your organisation for the next phase of postal reform.

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