Royal Mail has been fined £21 million after almost a quarter of first-class mail in the UK was delivered late, reported The WP Times with reference to Ofcom. The regulator said this is the third-largest fine it has ever imposed, following an investigation after Royal Mail failed to meet its delivery targets for first- and second-class mail in the 2024/25 financial year.

Ian Strawhorne, Ofcom’s director of enforcement, said that “millions of important letters are arriving late, and people aren’t getting what they pay for when they buy a stamp.”

Royal Mail stated that it would “continue to work hard to deliver further sustained improvements to our quality of service.” In the 2024/25 financial year, the company delivered 77% of first-class and 92.5% of second-class mail on time, missing its targets of 93% and 98.5% respectively.

This is the third time in recent years that Royal Mail has been penalized for delivery delays, following fines of £5.6 million in November 2023 and £10.5 million in December 2024. Ofcom said the initial fine could have been £30 million, but it was reduced by 30% because the company admitted its failings.

The regulator warned that further penalties were “likely” unless Royal Mail urgently presented a credible improvement plan. The company had previously published a plan aimed at achieving 85% on-time delivery for first-class and 97% for second-class mail, but these targets were never realized.

According to Strawhorne, Royal Mail must “urgently rebuild consumers’ confidence,” emphasizing that the company needs “real, tangible improvements, not more empty promises.” Ofcom’s investigation concluded that the company breached its obligations by failing to provide an acceptable level of service without justification.

The regulator also found that the steps Royal Mail took to meet its goals were “insufficient and ineffective.” Ofcom said the fine reflects “the harm suffered by customers” due to the company’s poor service.

Citizens Advice described Royal Mail’s performance as “woeful,” adding that such fines may fail to drive real change. “When these failures become just a normal part of doing business, Ofcom’s fine risks turning into another operating cost rather than an incentive for improvement,” said Tom MacInnes, the organization’s director of policy.

He noted that delayed mail has real-life consequences, leaving people waiting for urgent medical appointment letters, legal documents, and benefit decisions.

Under the Universal Service Obligation (USO), Royal Mail is required by law to deliver letters six days a week and parcels five days a week to every address in the UK. Since July, some regions have only been receiving second-class letters every other weekday, with no Saturday deliveries — a change proposed by Ofcom earlier this year.

In response to the decision, a Royal Mail spokesperson said the company “acknowledges Ofcom’s ruling and will continue to work hard to deliver sustained service improvements.” The spokesperson added that the reduction in second-class deliveries helped “drive a step change in quality,” while improvements in recruitment, training, and delivery office support are also underway.

The fine will be paid to the Treasury. Royal Mail, which was purchased by Czech billionaire Daniel Křetínský for over £5 billion last year, reported a profit in September after three consecutive years of losses.

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