Royal Mail hit with multi-million fine for repeatedly missing delivery targets

Royal Mail has received a hefty fine of £21 million for consistently failing to meet delivery targets over the past three years. The company has been warned that further penalties might follow unless significant improvements are made.

Delivery Performance Declines

According to Ofcom, Royal Mail missed its delivery standards for both first-class and second-class mail from April 2024 to March this year. The company delivered only 77% of first-class mail and 92.5% of second-class mail on time. The expected targets were set at 93% for first-class and 98.5% for second-class deliveries.

Reduced Delivery Goals Not Met

Earlier this year, these targets were revised downward. First-class mail expectations dropped to 90%, while second-class mail standards were set to 95%. Despite these adjustments, Royal Mail’s actual performance still fell short of meeting these new goals.

Significant Fines Imposed

This latest penalty marks a substantial increase from previous fines. Last year, the company was fined £10.5 million, and in 2023 it faced a £5.6 million penalty. The most recent fine is now the third-largest ever imposed by Ofcom.

Breach of Service Obligations

Ofcom has stated that Royal Mail failed to provide an acceptable level of service and violated its obligations. Many customers did not receive the service they paid for, leading to widespread disappointment.

Real-World Impact on Customers

• Citizens Advice highlighted cases where individuals received critical documents late, such as court summonses and eviction notices.
• Some people faced severe consequences due to delayed mail, affecting their ability to act on time-sensitive legal notices.

Future Expectations for Royal Mail

Ofcom has mandated that Royal Mail develop and implement a credible change plan quickly. They expect visible progress rather than mere assurances. The regulator has set a stringent new target for 99% of mail to be delivered no more than two days late.

Royal Mail’s Response

The Royal Mail spokesperson acknowledged Ofcom’s decision and emphasized their commitment to improving service quality. They have started various initiatives, such as enhancing recruitment, training, and offering additional resources to delivery offices to address the ongoing issues.

The company hopes to restore customer confidence and produce tangible advancements in the performance of their delivery services moving forward.