Royal Mail is once again under scrutiny after failing to meet its annual delivery targets, with Ofcom launching a formal investigation into the postal service’s persistent underperformance.
The regulator confirmed on Friday that 23.5% of first-class mail failed to arrive on time during the 2024–25 financial year — a marginal improvement on the previous year, but still below regulatory expectations.
Under Ofcom rules, 93% of first-class mail must be delivered within one working day, excluding the Christmas period.
Ofcom’s spokesperson stated: “We will investigate whether there are reasonable grounds for believing that Royal Mail has failed to comply with its obligations in 2024–25. If so, we will consider whether a financial penalty is appropriate.”
Royal Mail has already faced significant financial penalties in recent years.
In December 2024, the firm was hit with a £10.5 million fine for failing to meet its delivery standards. A further £5.6 million fine was imposed the year prior for similar breaches.
The latest delivery figures also showed that 92.2% of second-class post arrived within the three-working-day target — narrowly missing Ofcom’s benchmark.
Royal Mail’s Chief Operating Officer, Alistair Cochrane, acknowledged shortcomings, stating: “Our quality of service is not where we want it to be. We are committed to improving standards and are actively modernising our operations. Progress is being made, but we recognise there is still more to do.”
The investigation comes just weeks after Czech billionaire Daniel Křetínský’s EP Group finalised a £3.6 billion takeover of Royal Mail’s parent company, International Distributions Services.
Cochrane confirmed Royal Mail would fully cooperate with Ofcom’s inquiry but stressed the business was grappling with deeper structural issues.
He renewed calls for urgent reform of the universal service obligation, which currently requires Royal Mail to deliver letters nationwide six days a week at a uniform price.
Earlier this year, Ofcom launched a public consultation proposing changes to postal regulations — including scrapping Saturday deliveries and reducing second-class post to alternate weekdays — to help modernise the service and ease operational pressures.
