Hearing From Royal Mail on their Bulk Mail Delivery Model Changes

The most asked questions around the five delivery model changes

With significant changes being delivered to modernise Royal Mail’s delivery model, a lack of insight on the topic was causing increased uncertainties for businesses impacted by these changes. To relieve concerns, Central Mailing Services recently partnered with Royal Mail to host our debut ‘Mail on the Move’ workshop.

Our previous post provides a comprehensive overview of the event, which was hosted by Central Mailing Services’ Director, Richard Morrow, and Business Development Director, John Ellis. Joined by industry peers, they were provided the opportunity to learn of the developments and ask questions to Royal Mail’s Wholesale Commercial Director, Phil Ricketts, who attended the event.

Confirmed Delivery Model Changes

Ofcom has officially approved the changes to Royal Mail’s delivery model, with the new amendments taking effect from 10^th July 2025. These include:

• Second Class letters: Now delivered Monday to Friday only
• DSA Standard: Moving from D+2 to D+3
• DSA Economy: Still D+5, but Monday to Friday only
• DSA Priority: Still D+2, 6 days a week — with updated barcode requirements
• Door-to-Door campaigns: Delivery now Monday to Friday only

12 Key Questions Around Royal Mail’s 2025 Delivery Model Changes

During an open forum, guests were able to put their questions forward. Royal Mail’s Phil Ricketts provided the answers on the day, which Royal Mail have since approved and given us their permission to share below:

1. What is the VAT status of D+3?

Phil: Royal Mail expects the new D+3 service will be a regulated service for the purpose of the Access Condition from summer 2025, and, pending HMRC guidance, anticipates it will be VAT-exempt.

Central Mailing Services (CMS) take: This will align with the current VAT-exempt postal service for businesses.

2. In line with Ofcom’s proposal, what is the situation with Saturdays? What work will take place on a Saturday?

Phil: Royal Mail will deliver parcels and F -class items on Saturdays. For non-first-class letters from a delivery time span perspective, Saturdays will be considered a non-working day. However, mail centres will continue to accept mail on Saturdays, but it will be processed on the next business day. The New Priority 2nd class DSA service will also be delivered on Saturdays.

CMS: This means that businesses may need to alter their internal postage models to accommodate the ‘shorter’ working week, and still meet delivery dates.

3. How will business reply post be affected?

Phil: In the same way as other mail (1st or 2’* Class).

4. What happens in peak, and how will Royal Mail cope with spikes?

Phil: Royal Mail is subject to peaks and troughs currently. Obligations on Royal Mail to meet delivery timescales during these periods remain the same.

CMS: There shouldn’t be any significant impacts during peak periods, as postal services are equipped to manage increased postage needs.

5. Will there be an option for economy large letters?

Phil: There are currently no plans to offer an Economy Large Letter service.

6. What is the maximum number of days D+3 could take, in instances when there is a double bank holiday?

Phil: Taking the scenario of a bank holiday on a Friday and a Monday, deliveries to an address in week one schedules of delivery, i.e. Monday, Wednesday and Friday, a 2′ Class item posted on the Thursday before the Friday bank holiday that week would be delivered the following Tuesday.

7. Incentive applications can be quite complicated. Is there support that can be provided to help with these?

Phil: We encourage you to contact your mailing house and access operator to collaborate with them collectively and help you complete any such applications. Normally, the more challenging part of the applications sits around providing information on previous volumes posted and baselining these. This, in part, is a result of the complexity of the supply chain and the role of different partners in this. Engagement with these parties as a collective will be able to resolve such issues on your behalf.

CMS: We can work with you directly as the end client to help you gain these incentives.

8. Can incentives be backdated for past volumes?

Phil: No, unfortunately not.

9. What happens if delivery into Royal Mail is split over two days?

Phil: The delivery time frame promise will follow the pattern of how they were received into Royal Mail and will be processed accordingly.

10. Why are postcards not suitable for PAM, incentives or Economy mail?

Phil: Unfortunately, postcards are challenging for Royal Mail to sort through automation machines. They often double stack and cause misreads, and while we are still conducting ongoing testing to find suitable designs, there are no immediate plans to change.

11. Do you anticipate that certain mail dates will see spikes in volume?

Phil: Royal Mail currently sees variations in daily volumes, which vary seasonally. Royal Mail does not anticipate that this will change simply due to USO reform. The drivers of these changes tend to be market-led, i.e., Black Friday or campaign-led (campaigns landing in line with consumer payday dates).

CMS: This is where it can really work to be clever and manage your data in a way to avoid unnecessary delays.

12. Is there a potential that future changes will occur to the USO?

Phil: Quite possibly, the USO is designed based on customer needs at a particular point in time. These needs are likely to change over time, and therefore, these changes may result in further reviews of USO reform to align the USO to better meet these needs at a future point in time.

CMS: We are constantly investing in Technology and Automation to ensure that clients Print and mailing needs are met, while dealing with a postal system that is evolving.

How Will the New Delivery Model Affect Businesses?

There’s no denying that businesses will need to review and tweak their postal methods in line with these changes. However, as our workshop highlighted, it is evident that physical mail remains an essential form of marketing and communication. With the advanced notice of these changes, businesses have the time to take proactive measures, such as:

• Reviewing the timeline of postal needs
• Confirming set delivery dates & adjusting postage dates
• Advising clients of upcoming changes
• Educating staff on changes to postal processes

We’re Here to Help

Staying ahead of the curve will be essential with these developments. Significant process changes take time to integrate into the ‘new normal, ’ and making adjustments now will benefit you later on.

At CMS, we’re committed to keeping you as up-to-date as possible. Whether supporting you with postal services, providing insightful industrial articles, or hosting informative webinars.

Subscribe to our mailing list or reach out to your CMS account manager today to find out more.

Together, we’ll keep your mail moving; smoothly, strategically, and confidently into the future.