Overview

• Ofcom found Royal Mail delivered 77% of first‑class and 92.5% of second‑class post on time in 2024–25, against targets of 93% and 98.5%.
• The £21 million penalty was reduced from £30 million after Royal Mail admitted liability and agreed to settle, marking a third consecutive annual breach.
• Investigators said exceptional weather did not justify the shortfall and concluded the company took insufficient and ineffective steps to prevent failures.
• The regulator has already eased universal service rules, allowing changes to second‑class delivery days as Royal Mail prepares a new delivery model.
• Royal Mail acknowledged the decision and pointed to pilots and recruitment efforts, while Ofcom warned financial penalties are likely to continue without meaningful progress.