Royal Mail has received a £21 million fine from Ofcom after it was reported that nearly 25% of first-class mail was delivered late during the 2024-2025 fiscal year. This penalty represents the third-largest fine issued by Ofcom and follows the company’s failure to meet its delivery performance targets for both first and second-class mail. According to Ian Strawhorne, director of enforcement at Ofcom, the delays have resulted in “millions of important letters” arriving late, leading customers to feel they are not receiving the service for which they pay.
In the 2024-2025 period, Royal Mail managed to deliver 77% of first-class mail and 92.5% of second-class mail on time, falling short of its aims of 93% and 98.5%, respectively. This is not the first instance of regulatory penalties; Royal Mail was fined £5.6 million in November 2023 and £10.5 million in December 2024 for similar issues. Ofcom initially considered a £30 million fine but reduced it by 30% due to Royal Mail’s acknowledgment of its shortcomings.
Ofcom has indicated that if improvements are not made, further fines may be on the horizon. The regulator noted that Royal Mail had previously published an improvement plan which aimed to achieve 85% on-time delivery of first-class mail and 97% for second-class mail, but these targets have not been met.
Recently, some areas in the UK have switched to receiving second-class mail only every other weekday and not on Saturdays, a change suggested by Ofcom. Responding to the fine, a Royal Mail spokesperson stated that the company is committed to enhancing its service quality and has implemented various changes in recruitment and training to support this goal. The fine will ultimately be paid to the UK Treasury.
Source: https://www.bbc.com/news/articles/cd67qyw7z3vo?at_medium=RSS&at_campaign=rss