The postal regulator Ofcom has been sharply criticised by MPs for failing to tackle Royal Mail’s consistently poor service, with a report from the Business and Trade Committee suggesting the watchdog may be “not up to the job” of overseeing the modern postal market.
Despite incurring fines from Ofcom every year since 2022, Royal Mail continues to miss its delivery targets. Between April 2025 and January 2026, only 74.9 per cent of first-class mail arrived the next day – 18.1 percentage points below target. This equates to an estimated 126 million late first-class letters, leading to missed hospital appointments, delayed benefit decisions, and fines arriving too late to be challenged.
The committee also highlighted concerns that parcel giants such as Amazon are “hiving off profits” by using Royal Mail’s universal service for harder-to-reach addresses without contributing to infrastructure costs. Around 16 million people experienced letter delays over Christmas last year, a 50 per cent increase since 2024.
MPs have given Ofcom six months to demonstrate it has the authority and drive to regulate effectively. If it fails, the Secretary of State should consult on statutory changes to ensure the regulator is “fit for the 21st-century postal market”. Committee chair Liam Byrne said: “Millions of people are paying the price for a postal service that is simply not delivering.”
An Ofcom spokesperson defended the regulator’s actions, noting it had fined Royal Mail more than £37 million and demanded a credible improvement plan backed by investment. “The real issue is Royal Mail’s ability to deliver against its improvement plan,” the spokesperson said, adding that the company must urgently implement promised reforms.
Dave Ward, general secretary of the Communication Workers Union, welcomed the committee’s conclusions, saying Ofcom had “failed in its regulatory duties” and had not adequately addressed customer service failings, staff resourcing, or mismanagement at Royal Mail.
