In a troubling revelation for one of Britain’s most storied institutions, Royal Mail has reported that only 75.7% of first class mail was delivered on time in the past year, far below its target of 93%. This alarming figure comes amidst a backdrop of heightened scrutiny from regulators and an ongoing struggle to enhance service levels under its new private ownership.
The latest quality-of-service report, issued by the communications regulator Ofcom, reflects the postal service's challenges since its acquisition by Daniel Kretinsky’s EP Group, which was completed at the end of April last year. Ofcom has expressed “serious concerns” regarding Royal Mail’s inconsistent performance and is reportedly preparing to launch an investigation into the company’s efficiency next week.
Despite these setbacks, Royal Mail remains optimistic about its trajectory. According to Chief Operating Officer Jamie Stephenson, the company is making strides towards new, less ambitious delivery targets—90% for first class mail and 95% for second class—projected to be met by the next reporting period. “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,” he said.
Royal Mail has earmarked £500 million over the next five years as part of its strategic improvement plan, which has come under fire over years of declining service quality. This annual performance report, made public last Friday, revealed a continued downturn, reflecting a decrease from 76.9% in the previous fiscal year. The service is also falling short on delivering second class letters, with only 90.2% arriving within the planned three-day window against a target of 98.5%. Notably, the company has not met its first class delivery targets for a decade.
The Covid-19 pandemic precipitated a significant decline in delivery performance, and Royal Mail has yet to fully rebound in the wake of those challenges. In October 2025, Ofcom imposed a £21 million penalty on Royal Mail for failing to meet delivery targets—one of the largest fines handed down by the regulator in recent years. Similar penalties were levied in 2023 and 2024 for persistent underperformance.
Moreover, many postal workers have reported that letters have remained undelivered for weeks, as they were directed to prioritize parcel deliveries—typically more lucrative—over standard mail. This prioritization was met with fierce scrutiny, culminating in a parliamentary hearing where Kretinsky expressed regret for delays while denying allegations of systemic preference for parcels over letters.
“What’s worse,” said Tom MacInnes, policy director for Citizens Advice, “is that Royal Mail claims people will have to wait another year until it can meet its new, lower delivery targets.” To address these challenges, Royal Mail is also experimenting with staffing changes, allowing part-time workers to take on longer hours, and has reached an agreement with Ofcom to eliminate second class Saturday deliveries.
As Ofcom acknowledges the need for realistic targets, it has adjusted its benchmarks. Since April, the service must now achieve 90% of first class mail reaching recipients by the next working day and 95% for second class deliveries within three days. Ofcom has stated that the previous expectations were overly stringent when compared with similar postal services across Europe and carried the risk of necessitating higher prices to offset costs.
For decades, Royal Mail has been a cornerstone of British commerce and communication, but its ongoing service lapses have raised questions about the sustainability of its business model and its ability to adapt to modern demands.
Source: BBC News
Source: BBC Business
