By Eniola Amadu
Royal Mail has been fined £21 million by Ofcom after almost a quarter of first-class post failed to arrive on time during the 2024/25 financial year.
The penalty, one of the largest ever issued by the communications watchdog, follows an investigation that found Royal Mail missed its delivery targets for both first and second-class post.
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.”
Royal Mail said it would “continue to work hard to deliver further sustained improvements to our quality of service.”
Figures show that only 77 per cent of first-class mail was delivered on time, far below the target of 93 per cent, while 92.5 per cent of second-class mail met its target delivery date, short of the 98.5 per cent requirement.
Ofcom initially planned a £30 million fine but reduced it by 30 per cent after Royal Mail admitted its failings.
The regulator warned that further fines were “likely to continue” unless the company urgently produced “a credible improvement plan.”
In a statement, Ofcom said Royal Mail had “breached its obligations by failing to provide an acceptable level of service without justification.”
It added that the company’s efforts to meet its delivery targets were “insufficient and ineffective.”
This marks the third fine against Royal Mail in recent years, following penalties of £5.6 million in November 2023 and £10.5 million in December 2024 for similar delays.
Mr Strawhorne said Royal Mail must now “rebuild consumers’ confidence as a matter of urgency” and demonstrate “actual significant improvements, not more empty promises.”
Citizens Advice described Royal Mail’s performance as “woeful,” warning that repeated fines may not be enough to drive change.
“When these failures are just an ordinary part of doing business, Ofcom’s fine risks becoming another operating cost,” said policy director Tom MacInnes.
“Missed post has real-life consequences, with people left waiting for urgent medical appointment letters, legal documents and benefit decisions.”
Under the universal service obligation, Royal Mail is legally required to deliver letters six days a week and parcels five days a week across the UK.
However, since July, some areas only receive second-class letters every other weekday following Ofcom’s proposal earlier this year.
A Royal Mail spokesperson said the company acknowledged Ofcom’s decision and had introduced changes to recruitment, training, and delivery support.
The reduction of second-class deliveries in some areas, they added, was helping to “drive a step change in quality of service.”
The fine, which will be paid to the Treasury, comes a year after Royal Mail was acquired by Czech billionaire Daniel Kretinsky for more than £5 billion.
The company recently returned to profit after three consecutive years of losses.
