In December 2024 the Government cleared the sale of Royal Mail's parent company, International Distribution Services (IDS), to EP Group. The Government will retain a "golden share" that will require it to approve any major changes to Royal Mail's ownership, HQ location and tax residency. EP Group will also have to maintain the one‑price‑goes‑anywhere Universal Service Obligation (USO), which currently means it has to deliver letters six days per week, Monday to Saturday, and parcels Monday to Friday.
The sale of IDS was approved by over 80 per cent of shareholders in April 2025. The Chair of IDS, Keith Williams, has said that the deal will "provide our customers, colleagues, and broader stakeholders with safeguards for the provision of the USO". The Communication Workers Union General Secretary, Dave Ward, has said the deal "represents a pivotal moment in the history of Royal Mail — one of our country’s most iconic and important companies. The CWU have reached a groundbreaking agreement with EP Group that provides the platform for a fresh start and the rebuilding of Royal Mail".
The review into the USO closed in April 2025, with Royal Mail suggesting to regulator Ofcom that reducing second‑class deliveries to every other weekday would save up to £300m a year and give the business "a fighting chance".
Royal Mail is facing opposition from the Communications Workers Union (CWU), which represents over 100,000 postal workers, after Ofcom gave Royal Mail the green light to scrap second‑class posts on Saturdays as part of a relaxation of the USO. The CWU has warned that the model is overly complicated and accused managers of failing to honour an agreement signed during the takeover to reset industrial relations.
In November 2025 IDS announced that the scrapping of second‑class deliveries on Saturdays and transitioning to an every‑other‑weekday service would now not be rolled out across the UK until early 2026. Chief Executive Martin Seidenberg recognised that the reforms are a "massive task" and emphasised the need to "take the time to get this right".
Ofcom fined Royal Mail £21 million in October 2025 for missing its annual first‑ and second‑class mail delivery targets, the third largest fine ever imposed by the regulator. Royal Mail delivered 77 per cent of first‑class mail and 92.5 per cent of second‑class mail on time during the 2024/25 financial year versus targets of 90 per cent and 95 per cent, respectively. Ofcom's Director of Enforcement, Ian Strawhorne, has called on Royal Mail to deliver a "credible improvement plan" and "that means making actual significant improvements not more empty promises".
I will be following this issue very closely and remain committed to the cause of Royal Mail customers getting the service they deserve, including six‑days‑a‑week deliveries and a guaranteed standardised price for post throughout the UK, as enshrined by the USO, regardless of the owner. Whilst Ofcom is an independent regulator, Ministers are there to hold Ofcom accountable and to overrule the regulator where Ministers see fit.