By James Simons-
Royal Mail has been fined a whopping £21m after missing its annual first and second class mail delivery targets, leading to millions of letters arriving late across the UK, and a £21 million fine, regulator Ofcom said.
This fine is the third-largest ever imposed by the communications watchdog.
AD: Capeesh Restaurant
Royal Mail delivered 77% of first class mail and 92.5% of second class mail on time during the 2024-25 financial year, Ofcom found. This was short of the delivery giant’s respective 93% and 98.5% targets.
Ian Strawhorne, director of enforcement at Ofcom, said the failures are “persistent” and “unacceptable”, adding that customers “deserve better”.
He added: “Millions of important letters are arriving late, and people aren’t getting what they pay for when they buy a stamp.
AD: Oysterian Sea Food Restaurant And Bar
“These persistent failures are unacceptable, and customers expect and deserve better.
“Royal Mail must rebuild consumers’ confidence as a matter of urgency. And that means making actual significant improvements, not more empty promises.”
A spokesperson for Royal Mail said: “We acknowledge the decision made by Ofcom today and we will continue to work hard to deliver further sustained improvements to our quality of service.
“A key area of focus and investment has been the detailed work ahead of full implementation of our new delivery model, enabled by Ofcom’s changes to the universal service
Ofcom said the fine would have been £30m, but it had reduced it by 30% to reflect Royal Mail’s admission of its failings.
The regulator warned fines were “likely to continue” unless the company urgently delivers “a credible improvement plan”. Ofcom said Royal Mail published an improvement plan for last year, aimed at delivering 85% of first-class post on time and 97% of second-class post, but “this has not materialised”.
Mr Strawhorne said: “Royal Mail must rebuild consumers’ confidence as a matter of urgency. And that means making actual significant improvements, not more empty promises.”
Ofcom’s investigation found the company “breached its obligations by failing to provide an acceptable level of service without justification”.
It said the actions taken by Royal Mail to try and reach its targets were “insufficient and ineffective”.
Ofcom permitted Royal Mail to scrap second class letter deliveries on Saturdays and change the service to every other weekday, with the changes being rolled out in the coming months.
But under its universal service obligation, Royal Mail must keep Monday to Saturday deliveries for first-class post and maintain the target for second-class letters to arrive within three working days.
Responding to Ofcom, a Royal Mail spokesperson said: “We acknowledge the decision made by Ofcom today and we will continue to work hard to deliver further sustained improvements to our quality of service.
AD: Heritage And Restaurant Lounge Bar