Ofcom has launched a formal investigation into Royal Mail following yet another year in which the postal operator failed to meet its minimum delivery targets. The regulator’s action comes after Royal Mail admitted that only 76.3% of first-class mail was delivered within one working day for the year ending March 2025 — well below the 93% threshold mandated by Ofcom.
Despite showing a modest improvement on last year’s figure of 74.5%, the result still marks a third consecutive year of underperformance. Ofcom, the UK’s communications watchdog, has already fined Royal Mail a total of £16 million over the past two years for similar failings. Now, the company may face fresh financial penalties if the investigation finds it has again breached its obligations.
A statement issued by Ofcom on Friday said:
“If we determine that Royal Mail has failed to comply with its obligations, we will consider whether to impose a financial penalty.”
Royal Mail is also falling short on its second-class delivery targets. Ofcom requires 98.5% of second-class mail to be delivered within three working days. However, the company only managed to hit 92.2%, which is slightly lower than the previous year’s result.
Royal Mail’s chief operating officer, Alistair Cochrane, admitted there is still significant work to be done.
“Our quality of service is not yet where we want it to be, and we will continue to work hard to deliver the standards our customers expect,” he said.
“We are actively modernising Royal Mail, and while these efforts are beginning to deliver results, we know there is still more to do.”
The postal service has been undergoing major changes as it attempts to adapt to modern consumer demands, including declining letter volumes and increasing demand for larger parcels and next-day delivery services. According to the company, measures aimed at improving reliability include better recruitment and retention strategies, tackling sickness absence, extending delivery hours, and introducing more automation in sorting and distribution.
Royal Mail has long argued that the current universal service obligation (USO) — which requires the delivery of letters six days a week and parcels five days a week — is outdated and unsustainable. Mr Cochrane reiterated calls for a comprehensive reform of the USO, which is currently under review by Ofcom.
This latest performance shortfall comes just weeks after Royal Mail implemented its sixth stamp price hike in three years, raising the cost of a first-class stamp to £1.70. The price rises have triggered widespread criticism, especially in light of the company’s repeated failure to meet service standards.
Tom MacInnes, director of policy at Citizens Advice, was scathing in his response to the figures:
“For more than half a decade, consumers have been short-changed by our country’s postal service.
Royal Mail’s quality of service targets should be there to protect customers, but the company is still getting away with hiking stamp prices while failing to deliver post on time.”
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He added that delays in postal deliveries can have serious consequences for individuals, citing missed NHS appointments, late payment fines, and disruptions to important government communications.
“With no alternative provider to choose from, people are forced to grapple with poor service, year-on-year,” he said.
“The regulator must get off the sidelines and make the company do what it should’ve been doing all along – giving paying customers the service they deserve.”
The timing of Ofcom’s investigation is also noteworthy, as it follows last year’s £3.57 billion acquisition of Royal Mail’s parent company, International Distributions Services (IDS), by Czech billionaire Daniel Kretinsky. While the takeover raised questions about the future direction of the UK’s most iconic postal institution, customers are still waiting to see meaningful improvements in its day-to-day performance.
As the watchdog begins its inquiry, Royal Mail now faces mounting pressure to demonstrate it can still fulfil its public service obligations — or risk further penalties and reputational damage.
