Royal Mail is under investigation by Ofcom after failing to meet key delivery performance targets, potentially facing another fine from the regulator.
In the year ending March 2025, only 76.3% of first-class mail was delivered on time—well below the required 93%. Although slightly better than last year’s 74.5%, the result still falls short. Second-class mail also missed its benchmark, with just 92.2% delivered within three working days against a 98.5% target.
Ofcom stated that it would consider imposing a financial penalty if it finds Royal Mail in breach of its obligations. This comes after the company was fined a total of £16 million over the previous two years for similar failures.
Royal Mail acknowledged its underperformance, saying it is “actively modernising” and beginning to see some improvements, though “there is still more to do.”
Meanwhile, Citizens Advice criticised the company for raising stamp prices while continuing to deliver poor service. A first-class stamp now costs £1.70—its sixth price increase in three years. The charity urged Ofcom to hold Royal Mail accountable and ensure it provides “the service customers deserve.”
Royal Mail’s chief operating officer, Alistair Cochrane, admitted service levels were below expectations and called for reform of the universal service obligation (USO), which requires six-day letter delivery and five-day parcel delivery across the UK.
Ofcom has previously proposed reducing second-class letter deliveries to every other weekday, excluding Saturdays, to help secure the future of the postal system.
Citizens Advice warned against weakening delivery standards, with policy director Tom MacInnes stating: “The regulator must stop sitting on the sidelines and ensure Royal Mail meets its responsibilities.”
The scrutiny comes shortly after shareholders approved a £3.6 billion takeover of Royal Mail’s parent company, International Distribution Services, by Czech billionaire Daniel Křetínský’s EP Group. The move marks a major shift for the 500-year-old postal institution. Photo by Ardfern, Wikimedia commons.