Ofcom Imposes Significant Penalty
Communications regulator Ofcom has fined Royal Mail £21 million for its failure to meet crucial delivery targets for First and Second Class mail during the 2024/25 financial year. This penalty, announced on October 15, 2025, is the third-largest fine ever imposed by the watchdog and follows previous fines of £5.6 million in November 2023 and £10.5 million in December 2024, marking the third consecutive year of such breaches.
The fine was reduced from a potential £30 million due to Royal Mail's admission of liability and agreement to settle the case. Ofcom stated that the company's actions were 'insufficient and ineffective' in preventing these shortcomings, which have impacted millions of customers across the United Kingdom.
Failure to Meet Key Performance Indicators
Royal Mail significantly missed its regulated delivery targets for the period between April 2024 and March 2025. The specific targets and actual performance were:
- First Class Mail: Target was 93% delivered within one working day. Royal Mail achieved only 77%.
- Second Class Mail: Target was 98.5% delivered within three working days. Royal Mail achieved only 92.5%.
Ofcom's investigation considered factors such as exceptional weather events, including storms and floods, but concluded that Royal Mail still fell short of its obligations.
Regulator's Warning and Royal Mail's Response
Ian Strawhorne, Ofcom's Director of Enforcement, criticised the ongoing performance issues, stating, 'Millions of important letters are arriving late, and people aren't getting what they pay for when they buy a stamp. These persistent failures are unacceptable, and customers expect and deserve better.' He urged Royal Mail to 'rebuild consumers' confidence as a matter of urgency' and to make 'actual significant improvements, not more empty promises.'
Ofcom has demanded that Royal Mail urgently publish and implement a credible improvement plan, warning that further fines are likely if significant progress is not made. In response, a spokesperson for Royal Mail acknowledged the decision and affirmed the company's commitment to 'continue to work hard to deliver further sustained improvements.' They highlighted ongoing efforts in recruitment, training, and providing additional support to delivery offices as part of their strategy to enhance service quality.
7 Comments
Africa
Blaming Royal Mail entirely ignores the staffing crisis and impossible targets.
Coccinella
£21 million? Not enough for the constant delays and lost mail.
eliphas
The repeated fines show a systemic problem, and Royal Mail absolutely must improve. Yet, simply fining them again might not solve the underlying issues of infrastructure or workforce morale.
Mariposa
Good, maybe this will finally make them deliver letters on time.
paracelsus
Customers are definitely suffering from late deliveries, and Ofcom is right to act. But we also need to consider the immense logistical challenges Royal Mail faces as a national service provider.
eliphas
While I agree Royal Mail needs to be held accountable for missed targets, I question if these fines truly incentivise change or just become another operational cost they factor in, ultimately passed to consumers.
paracelsus
It's clear Royal Mail has failed its customers, and a fine sends a strong message. However, the article also mentions weather issues, indicating some challenges are beyond their direct control.