Royal Mail fined £10.5m for 'millions of late deliveries' as Ofcom accuses firm of 'eroding public trust'

Ofcom has slapped Royal Mail with a hefty £10.5m fine for failing to hit its delivery targets in the past year. In an announcement earlier today, the communications regulator stated it was imposing the penalty on the postal service provider—marking the second fine in just over 12 months—for significantly underperforming on its obligations.

Only 74.7 percent of First Class mail and 92.7 percent for Second Class were delivered on time against targets of 93 percent and 98.5 percent, respectively, as reported by City AM.

"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," expressed Ian Strawhorne, Ofcom Director of Enforcement.

He added, "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."

Previously, the company faced a £5.6m fine in November 2023. Citing industrial action and a "challenging financial position" as causes for the subpar service, Royal Mail did not persuade Ofcom.

The regulator insisted that neither reason justified the failure to meet service levels, maintaining that managing financial affairs while upholding duties is squarely on the company.

Ofcom has not only imposed a fine on the company but also has been urging the delivery service to enhance its performance targets. However, improvements have only been "marginally" better compared to 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," the telecoms regulator insisted. The substantial £10.5 million financial penalty will be directed entirely to the Treasury.