"Royal Mail owner EP Group and the Communication Workers Union (CWU) have agreed to pause any further roll-out of the new USO delivery system this year.
Currently there are 35 pilot sites working to deliver to the new USO regulatory framework, which came into effect on 28 July.
The new USO retains a six days a week, Monday to Saturday delivery service for First Class mail, while Second Class post will be delivered on a five day alternating schedule that excludes Saturdays.
However, a previous CWU briefing on the early experiences at the pilot scheme delivery offices had already flagged potential challenges with maintaining performance during high-volume periods, and in the event of adverse weather conditions.
The rigidity of the new USO model was also highlighted as a possible issue at peak periods.
In a statement issued on Friday afternoon (19 September), the CWU stated: “We met with EP Group last Thursday and they confirmed that given the differences that remain between Royal Mail and CWU on the approach to deploying USO Reform, alongside the need for all parties to now focus on preparing properly for the pending peak period, there will be no further deployment of the USO this year, beyond the existing 35 pilot sites.
“The Union believes this is the right decision and represents a pragmatic response from the company to resolving these crucial issues, allowing for further talks to prioritise the need to reach an agreement that deploys a workable and sustainable solution, rather than one that is based on pre-determined and unrealistic savings.”
The CWU said the decision not to deploy any further USO reform this year also reflected the correct sequencing of the commitments made in section five of the EP Group/CWU agreement, and both parties have now agreed to “intensify discussions from next week to resolve all the outstanding section 5 issues.”
In December 2024 the CWU reached an agreement with EP Group, which listed legal guarantees and several other commitments, including on pay in 2025 and resolving outstanding issues.
Royal Mail had not commented at the time of writing.
Regulator Ofcom had previously envisaged the full roll-out of the new USO could take as long as 12-18 months.
An Ofcom spokesperson told Printweek: “The changes to our regulation of the delivery of Second Class letters took effect on 28 July 2025. Securing the benefits of these changes will rely on the effective implementation of the new operating model by Royal Mail.
“It is the company’s decision when and how to implement changes to its operations, and it has estimated that implementing the necessary changes across its network will take approximately 18-24 months. We will monitor this process closely, in particular to identify any issues with the implementation of changes, assess whether the cost savings have been realised and understand any impacts on the consumer experience.”
