Royal Mail has been hit with a £21 million fine after it failed to deliver nearly a quarter of first-class letters on time last year, according to Ofcom, the UK’s communications regulator.
This is one of the largest fines Ofcom has ever issued. The penalty follows an investigation that found Royal Mail missed its delivery targets for both first- and second-class post during the 2024/25 financial year.
“Millions of important letters are arriving late,” said Ian Strawhorne, Ofcom’s director of enforcement. “People aren’t getting what they pay for when they buy a stamp.”
Royal Mail said it would continue working to improve its service, promising “further sustained improvements” in mail delivery.
Missed targets and repeated fines
In 2024/25, Royal Mail delivered:
77% of first-class mail on time (target: 93%)
92.5% of second-class mail on time (target: 98.5%)
This marks the third fine in just a few years — £5.6 million in 2023 and £10.5 million in 2024 — all for failing to meet delivery standards.
Ofcom said the fine could have been as high as £30 million, but it was reduced by 30% because Royal Mail admitted its failings.
The regulator warned that more penalties could follow unless Royal Mail produces “a credible improvement plan” soon.
“Empty promises” and poor service
Ofcom criticized the company for failing to deliver on its own promises. Royal Mail had previously published a plan to improve its service, aiming to deliver 85% of first-class post and 97% of second-class post on time, but Ofcom said “this has not materialized.”
“Royal Mail must rebuild customer confidence urgently,” Strawhorne said. “That means real improvements — not more empty promises.”
The watchdog concluded that Royal Mail “failed to provide an acceptable level of service without justification” and that its attempts to fix the problem were “insufficient and ineffective.”
The fine reflects the harm caused to customers who rely on timely deliveries, Ofcom added.
Fewer Saturday deliveries
By law, under the Universal Service Obligation (USO), Royal Mail must deliver letters six days a week and parcels five days a week to every UK address.
However, since July, some areas now only receive second-class letters every other weekday — and not on Saturdays — as part of changes Ofcom proposed earlier this year.
A Royal Mail spokesperson responded: “We acknowledge Ofcom’s decision and remain committed to improving our service quality.”
They added that reducing second-class deliveries in some regions has helped Royal Mail focus on reliability, and that the company has invested in recruitment, training, and support for its delivery teams.
The £21 million fine will be paid to the Treasury. Photo by Georgios Pazios (Alaniaris), Wikimedia commons.