Overview
- The penalty is Ofcom’s third-largest and the third in as many years, following fines of £5.6 million in 2023 and £10.5 million in 2024, with the new amount reduced by 30% from a potential £30 million after Royal Mail admitted liability and settled.
- From April 2024 to March 2025, Royal Mail delivered 77% of first-class and 92.5% of second-class mail on time against statutory targets of 93% and 98.5%.
- Ofcom concluded the shortfall was unjustified even after accounting for severe weather events and said Royal Mail took “insufficient and ineffective” steps to prevent failures.
- The regulator ordered Royal Mail to urgently publish and implement a credible improvement plan, warning that continued underperformance will bring further penalties.
- Royal Mail said pilots of a new delivery model and network changes, including recruitment and training, are under way under updated Universal Service rules that allow reduced second-class frequency and set new backstop targets.