Ofcom probes Royal Mail after repeated delivery failures

British communications regulatory body Ofcom is set to investigate the continued failure of deliveries by the over 500-year-old postal company Royal Mail. The company has been accused of not complying with its service obligations for 2024–25.

The investigation follows recent admissions by Royal Mail. The company acknowledged that only 76.5% of first-class mail arrived within one working day, and 92.2% of second-class mail was delivered within three days. These figures fall short of the standards set by Ofcom. According to the watchdog, 93% of first-class mail should be delivered within one day of collection, excluding the Christmas period.

Their performance has improved slightly from last year’s 74.5%.

"We are actively modernising Royal Mail, and while these efforts are beginning to deliver results, we know there is still more to do," said Alistair Cochrane, Chief Operating Officer at Royal Mail. “Our quality of service is not yet where we want it to be,” he added.

Fines totalling £16 million were imposed on Royal Mail for delivery failures in both 2023–24 and 2022–23. “If we determine that Royal Mail has failed to comply with its obligations, we will consider whether to impose a financial penalty,” stated Ofcom on Friday.

The company has requested a change in rules concerning uniform pricing for first- and second-class mail across the UK. Proposals have also been made to introduce new, additional reliability targets.

Czech billionaire Daniel Křetínský has agreed to take over Royal Mail’s parent company, International Distribution Services (IDSI.L). However, the deal has been delayed and is now expected to close in the second quarter of 2025.

“Our research has shown the damaging consequences of late post, such as missed health appointments, fines, bills, and vital government communications. But with no alternative provider to choose from, people are forced to grapple with poor service year after year. With Ofcom considering relaxing the current delivery targets set for Royal Mail as part of the universal service obligation review, reliability remains a huge concern,” said Tom MacInnes, Director of Policy at Citizens Advice.

Royal Mail is aiming to improve reliability through “recruitment and retention, reducing sickness absence, extending delivery times and increased automation,” stated a company spokesperson.