Royal Mail Fined for Late Deliveries
Royal Mail has been slapped with a record £10.5 million fine by the postal regulator, Ofcom, for failing to meet its delivery targets. This marks the second financial penalty for the company in just over a year.
The issue stems from Royal Mail's inability to deliver first-class letters within one working day and second-class letters within three days, as per its regulatory obligations. Between April 2022 and March 2023, the company fell short of its targets, delivering only 74.7% of first-class and 92.7% of second-class letters on time. This resulted in millions of customers experiencing delays, including many who received Christmas cards weeks late.
While Royal Mail blamed its poor performance on financial struggles, Ofcom concluded that the company had not taken sufficient steps to address the delays. This led to the hefty fine, surpassing the £5.6 million penalty imposed last year.
Despite acknowledging Royal Mail's recent improvement and adherence to an improvement plan, Ofcom urged the company to accelerate progress and restore public trust. Royal Mail, in response, emphasized its efforts to improve and called for a reform of the Universal Service to reflect modern postal usage.
The fine comes amidst a potential takeover of Royal Mail's parent company by Czech billionaire Daniel Kretinsky. The deal, valued at £3.6 billion, is expected to receive government approval in the coming weeks.