Royal Mail delivered just 75.7% of first-class mail on time in the year ending March, significantly missing its 93% target, according to its latest quality-of-service report. The figures reflect the postal service’s performance under its new private owner, EP Group, led by Daniel Kretinsky, and have prompted serious concern from the regulator Ofcom, which is expected to launch a probe early next week.
Performance Decline Under New Ownership
The latest data reveals a decline in performance compared to the previous year, when Royal Mail was still a publicly listed company. In the year prior, 76.9% of first-class letters and 92.2% of second-class letters met their delivery targets. This year’s report shows only 90.2% of second-class letters were delivered within three working days, falling short of the 98.5% target.
This marks the sixth consecutive year Royal Mail has failed to meet its second-class delivery targets and the tenth year for first-class letters. Performance had previously slumped during the Covid-19 pandemic and has not fully recovered since.
Regulatory Action and Royal Mail’s Response
Ofcom has expressed significant concern over the persistent underperformance. The regulator previously fined Royal Mail £21 million in October last year for missing targets, the third-largest fine ever issued by the watchdog. Further fines were imposed in 2023 and 2024 for similar issues.
Responding to the latest figures, Royal Mail stated that its service is improving and that it is on track to meet new, reduced targets by next year. These revised targets, agreed upon with Ofcom, aim for 90% of first-class letters to be delivered by the next working day and 95% of second-class letters within three days.
Chief operating officer Jamie Stephenson acknowledged the challenges, stating, “We’re putting significant investment into improving reliability and reaching these new delivery targets, but delivering lasting change across a network of this scale takes time.” The company plans to invest £500 million over the next five years as part of its improvement strategy.
Past Criticisms and Allegations
The postal service has faced years of public and political criticism for its slow letter delivery times. In February, postal workers informed the BBC that some letters were being left undelivered for weeks, with staff allegedly being instructed to prioritize more profitable parcel deliveries.
Daniel Kretinsky addressed these concerns in March before a parliamentary select committee, apologizing for late deliveries. He denied any instructions or discussions sanctioning the prioritization of parcels over letters.
Expert and Consumer Views
Citizens Advice policy director Tom MacInnes described the poor performance as “business as usual” for Royal Mail. He added, “What’s worse, Royal Mail claims people will have to wait another year until it can meet its new, lower delivery targets.”
As part of its improvement plan, Royal Mail has offered part-time workers the option to increase their hours. They have also agreed with Ofcom to discontinue second-class deliveries on Saturdays under the new operational model.
Ofcom justified the reduction in targets, noting that previous goals were “more stretching” than those in comparable European countries and incurred higher costs. The regulator believes the revised, lower targets will be more achievable and potentially reduce price pressures on consumers.
Looking Ahead
The coming year will be critical for Royal Mail as it attempts to meet its newly established, less stringent delivery targets. The success of its £500 million investment plan and the effectiveness of operational changes, such as the potential increase in hours for part-time staff and the cessation of Saturday second-class deliveries, will be closely monitored by Ofcom, consumers, and industry stakeholders. The regulator’s expected probe could also lead to further significant actions or penalties, depending on the findings regarding Royal Mail’s service quality and adherence to its obligations.
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