Royal Mail has been given the green light to scrap Saturday deliveries for second class post from July 28 in a major shake-up of the postal service.

Second class post will also only be delivered on alternate weekdays. The communications regulator Ofcom first announced plans to reduce second class post in January this year, with the proposals being confirmed today.

It is estimated that reducing second class deliveries will save Royal Mail between £250million and £425million. Royal Mail has been fined more than £16million in the last 18 months over missing delivery targets and poor performance.

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First class post will still be delivered Monday to Saturday. Ofcom said the number of letters being delivered to UK homes has fallen from 20 billion twenty years ago, to 6.6 billion today.

Natalie Black, Ofcom’s Group Director for Networks and Communications, said: “These changes are in the best interests of consumers and businesses, as urgent reform of the postal service is necessary to give it the best chance of survival.

“But changing Royal Mail’s obligations alone won’t guarantee a better service – the company now has to play its part and implement this effectively.

“We’ll be making sure Royal Mail is clear with its customers about what’s happening, and passes the benefits of these changes on to them.

“As part of this process, we’ve been listening to concerns about increases in stamp prices. So we’ve launched a review of affordability and plan to publicly consult on this next year.”

Martin Seidenberg, group chief executive of Royal Mail parent firm International Distribution Services, said: “We welcome today’s announcement from Ofcom.

“It is good news for customers across the UK as it supports the delivery of a reliable, efficient and financially sustainable universal service.

“It follows extensive consultation with thousands of people and businesses to ensure that the postal service better reflects their needs and the realities of how customers send and receive mail today.”

Tom MacInnes, Director of Policy at Citizens Advice, said: “Royal Mail has a woeful track record of failing to meet delivery targets, all the while ramping up postage costs. Today, Ofcom missed a major opportunity to bring about meaningful change.

“Pushing ahead with plans to slash services and relax delivery targets in the name of savings won’t automatically make letter deliveries more reliable or improve standards.

“While Ofcom says it recognises the importance of affordability and reliability for consumers, we need to see those words backed by action, forcing Royal Mail to do what it should've been doing all along - giving paying customers a service that delivers.”