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Royal Mail has received a fine of £10.5m from Ofcom for failing to meet delivery targets for first and second class mail. This figure is almost double the penalty that was given to the company last year for the same offence. The regulator stated that the poor service provided by Royal Mail is “eroding public trust in one of the UK’s oldest institutions.”
International Distribution Services (IDS), the owner of Royal Mail has carried out “substantial” reforms this year to boost its performance. In fact, IDS stated that it is “making the necessary changes to deliver for our customers.” However, Ofcom’s Director of Enforcement, Ian Strawhorne, criticised the company for failing its customers: “With millions of letters arriving late, far too many people aren’t getting what they pay for when they buy a stamp…” Although some progress has been made, it is clear that Royal Mail must move “further and faster to deliver the service that people expect.”
Citizens Advice, a charity that offers free financial and legal advice, called the failure to meet a delivery target for almost five years “simply unacceptable”. The organisation noted that “letter delays leave millions of people missing urgent medical appointment letters, legal documents and benefit decisions… this comes despite Royal Mail routinely hiking their prices, meaning consumers are getting less despite paying far more.”
Under Ofcom’s rules, Royal Mail has to deliver at least 93% of first-class mail within one working day and 98.5% of second class post within three working days. In the year ending March 2024, the company missed both targets, reaching figures of just 74.7% and 92.7% respectively. Ofcom has been pressing the company to improve its service. Although there has been some progress, the regulator stated that it has only been marginal and that “it needs to do much better”.
Last year, Royal Mail received a fine of £5.6m for failing to meet delivery targets in 2022-23. In addition to the fine, Ofcom has been re-examining the Universal Service, looking at changes to second class deliveries and whether a six day a week service for first class post is necessary. It has suggested that Royal Mail could save hundreds of millions of pounds if it reduced mail deliveries to five or even three days a week
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