After widespread delays to first and second class deliveries in 2024–25, Ofcom has issued a Royal Mail Ofcom fine of £21m for persistent failures to meet service targets.
The regulator said only 77% of first class letters and 92.5% of second class letters were delivered on time, below the 93% and 98.5% thresholds. It reduced the Royal Mail Ofcom fine from £30m to reflect the company’s admission of failings.
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Ian Strawhorne, Ofcom’s director of enforcement, said: “Millions of important letters are arriving late, and people are not getting what they pay for when they buy a stamp.” He called for a credible improvement plan to restore confidence.
Royal Mail said it accepts the decision and will “continue to work hard to deliver further sustained improvements to our quality of service”. It has cited changes in recruitment and training, and additional support in delivery offices.
This is the third consecutive penalty in recent years. The company was fined £5.6m in 2023 and £10.5m in 2024 for similar breaches. The regulator warned that further sanctions are likely if performance does not improve.
Consumer advocates say delays have real-world consequences, from missed medical appointments to late legal documents. Citizens Advice has argued that customers should not be left bearing the cost of poor service.
Royal Mail remains bound by the universal service obligation to deliver letters six days a week and parcels five days a week. Reforms agreed this year allow second class letters to be delivered on alternate weekdays. Details of the new requirements are set out in this underlined guidance: Reforming the postal service so it delivers what people need.
Royal Mail’s parent company, International Distribution Services, was acquired by investor Daniel Křetínský last year. The group reported a return to profit in September after three years of losses. Proceeds from the Royal Mail Ofcom fine will be paid to the Treasury.
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