Royal Mail has been fined £21 million by Ofcom for failing to meet delivery targets, marking the third time the postal service has been penalised by the regulator. Ofcom found that Royal Mail delivered only 77% of first-class mail and 92.5% of second-class mail on time in the 2024-25 financial year, well short of its targets of 93% and 98.5% respectively.
The regulator described the failures as 'unacceptable' and 'persistent', noting that millions of important letters arrived late. Ofcom's director of enforcement, Ian Strawhorne, said: 'Millions of important letters are arriving late, and people aren't getting what they pay for when they buy a stamp. These persistent failures are unacceptable, and customers expect and deserve better.'
The fine, reduced by 30% from £30 million due to Royal Mail's admission of liability, is the third-biggest financial penalty Ofcom has ever issued. Royal Mail has been ordered to publish a credible improvement plan urgently, or face further fines. The company had produced a plan last year but failed to show improvement.
Royal Mail said it would continue to work on improvements, including changes to recruitment and training, and additional support to delivery offices. A spokesperson highlighted the implementation of a new delivery model enabled by Ofcom's changes to the universal service obligation, which they said was critical to driving a step-change in quality of service.
