Royal Mail hit with £10.5m fine over late deliveries
Ofcom has hit Royal Mail with a £10.5m fine today for failing to meet its delivery targets over the past year.
In a statement this morning, the media watchdog said it would fine the postal company for the second time in just over a year for falling “well short” of its first and second class delivery targets.
Only 74.7 per cent of First Class mail and 92.7 per cent of Second Class was delivered on time, Ofcom said, far below the respective targets of 93 per cent and 98.5 per cent.
“With millions of letters arriving late, far too many people aren’t getting what they pay for when they buy a stamp. Royal Mail’s poor service is now eroding public trust in one of the UK’s oldest institutions,” Ian Strawhorne, Ofcom Director of Enforcement, said.
“This is the second time we’ve fined the company since the pandemic. Royal Mail has provided an improvement plan, and we’re seeing some signs of progress, but it must go further and faster to deliver the service that people expect.”
The company was hit with a £5.6m charge in November 2023.
Ofcom said Royal Mail had blamed its poor performance on its “challenging financial position” and industrial action.
“We do not consider either of these to be justifiable reasons for Royal Mail’s failure to provide the levels of service expected of it. Ultimately, it is for the company to manage its financial position taking account of its obligations,” it said.
As well as fining the company, Ofcom said it has been pressing the delivery service to improve its targets but it performance had improved only “marginally” on the previous year.
“At a minimum we expect to see a clear, credible and publicly-communicated plan setting out how Royal Mail will get back on track through meaningful, sustainable and continuous improvements for customers,” it added.
The financial penalty of £10.5m will be passed in full to the Treasury. The fine includes a 30 per cent discount from an initial £15m after Royal Mail admitted liability and agreed to settle the case.