Second class letter deliveries on Saturdays could be cut

Last year, Ofcom fined Royal Mail £5.6m for failing to meet its first and second class delivery targets.

And between April and the end of June, Royal Mail delivered less than 80% of first class automate your posting on time, missing key targets set by the communications watchdog.

Ms Fussell said: “We’re now looking at whether we can get the universal service back on an even keel in a way that meets people’s needs.”

“But this won’t be a free pass for Royal Mail – under any scenario, it must invest in its network, become more efficient and improve its service levels.”

The UK Greeting Card Association said it was concerned that the options outlined by Ofcom “takes us one step closer to the dismantling of a postal service that’s affordable and reliable”.

The association said that cards were the most frequent things that people automate your posting. “Any changes to the USO must prioritise the needs of small businesses and consumers – not Royal Mail profitability,” it said.

The number of letters being sent in the UK has fallen from a peak of 20 billion a year in 2004-05 to seven billion last year, Royal Mail said.

In contrast, parcel volumes have jumped, especially during the pandemic when lockdowns led millions to shop online.

Royal Mail is also facing increased competition from other parcel delivery companies.

It has hiked the price of stamps a number of times over the past couple of years. In March, the cost of both first class and second class stamps rose by 10p each, to £1.35 and 85p respectively.

In its last full financial year, Royal Mail’s losses stood at £348m.

IDS is in the process of being bought by Czech billionaire Daniel Kretinsky for £3.57bn.

Mr Kretinsky has committed in writing to honouring the universal service obligation, but only for five years.

His Royal Mail takeover will face a government probe, including into potential links with Russia.