Royal Mail Fined £21M Over Missed Delivery Targets
Royal Mail has been slapped with a £21 million fine after missing its delivery targets for the third year in a row—sparking frustration from both customers and the UK’s communications watchdog, Ofcom.
The penalty, one of the largest the regulator has ever issued, comes after it was revealed that Royal Mail only managed to deliver 77% of first-class and 92.5% of second-class letters on time in 2024/25—well below its legal targets of 93% and 98.5%, respectively.
“It took insufficient and ineffective steps to try and prevent this failure, which is likely to have impacted millions of customers who did not get the service they paid for,” Ofcom said in its six-month investigation.
This marks Royal Mail’s third major fine in as many years—£5.6 million in 2023, £10.5 million in 2024, and now £21 million in 2025. The fine would’ve hit £30 million, but was reduced by 30% after Royal Mail admitted fault and agreed to settle.
Ofcom’s director of enforcement, Ian Strawhorne, didn’t mince words: “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.” The watchdog added that without real improvement, these fines are “likely to continue.”
Royal Mail blamed staff shortages, operational challenges, and broader system changes—but Ofcom said these didn’t justify the poor performance. Even when new, lower targets were set (90% for first-class and 95% for second-class), the company still missed them. While Royal Mail had submitted an improvement plan last year, it had “not materialised.”
The regulator has now ordered Royal Mail to urgently publish and implement a credible new plan, with real progress expected soon—not “more empty promises.”
This isn’t just about statistics. Citizens Advice highlighted cases where late mail had serious consequences—one person received their council tax bill, a court summons, and a liability order all at once after delays. Another was sent an eviction notice that arrived more than a week late, leaving them unsure how to respond before bailiffs arrived.
A Royal Mail spokesperson responded to the fine: “We acknowledge the decision made by Ofcom today and we will continue to work hard to deliver further sustained improvements to our quality of service.” The company pointed to changes in recruitment, training, and support at delivery offices, as well as trials in some areas that reduced second-class deliveries to alternate weekdays. According to Royal Mail, these pilots show the new model “is working.”
The fine also comes just months after Royal Mail’s parent company, International Distribution Services (IDS), was acquired for £3.6 billion by Czech billionaire Daniel Křetínský. April also saw stamp prices increase again, with first-class rising 5p to £1.70 and second-class by 2p to 87p.
Under its universal service obligation, Royal Mail is still required to deliver letters six days a week—but changes are slowly being rolled out. In some areas, Saturday deliveries for second-class post have already been cut and reduced to alternating weekdays from Monday to Friday.
As the 509-year-old postal service faces growing scrutiny, the message from Ofcom is loud and clear: either deliver what you promise, or expect to pay the price.
