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Royal Mail fined £10.5m for missing delivery targets Royal Mail fined £10.5m for missing delivery targets
(32 minutes later)
Royal Mail has been fined £10.5m by the regulator for failing to meet delivery targets for first and second class mail.Royal Mail has been fined £10.5m by the regulator for failing to meet delivery targets for first and second class mail.
It is the second year in a row the company has been fined by Ofcom for poor delivery performance.It is the second year in a row the company has been fined by Ofcom for poor delivery performance.
The regulator said Royal Mail had failed to "significantly improve service levels". Ofcom said, external Royal Mail's poor service was "now eroding public trust in one of the UK's oldest institutions".
It said 74.7% of first class mail and 92.7% of second class were delivered on time in 2023-24, well short of the targets of 93% and 98.5%. Royal Mail owner International Distribution Services (IDS) said, external it had carried out "substantial" reforms this year to try to drive improvements.
"We are making the necessary changes to deliver for our customers," IDS said.
However, Ofcom director of enforcement Ian Strawhorne said: "With millions of letters arriving late, far too many people aren't getting what they pay for when they buy a stamp.
"Royal Mail has provided an improvement plan, and we're seeing some signs of progress, but it must go further and faster to deliver the service that people expect."
Royal Mail was privatised more than a decade ago, but it is still legally required to deliver letters across the UK at a set price six days a week.
Under Ofcom's rules, the postal operator is meant to deliver at least 93% of first class mail within one working day, and 98.5% of second class post within three working days.
In the year to the end of March, however, it missed both targets reaching figures of just 74.7% and 92.7% respectively.
Ofcom said the company had blamed its poor performance on its challenging financial position, and on delays to a ballot on a pay deal following strike action by members of the Communication Workers' Union last year.Ofcom said the company had blamed its poor performance on its challenging financial position, and on delays to a ballot on a pay deal following strike action by members of the Communication Workers' Union last year.
However, Ofcom said: "We do not consider either of these to be justifiable reasons for Royal Mail's failure to provide the levels of service expected of it.However, Ofcom said: "We do not consider either of these to be justifiable reasons for Royal Mail's failure to provide the levels of service expected of it.
"Royal Mail took insufficient and ineffective steps to try and prevent this failure, which is likely to have impacted millions of customers who did not get the service they paid for.""Royal Mail took insufficient and ineffective steps to try and prevent this failure, which is likely to have impacted millions of customers who did not get the service they paid for."
Last year, Royal Mail was fined £5.6m for the same reason.Last year, Royal Mail was fined £5.6m for the same reason.
Ofcom said that in addition to the fine, it had been pressing the company to see what it was doing to improve its performance.Ofcom said that in addition to the fine, it had been pressing the company to see what it was doing to improve its performance.
While there had been some progress, it said performance in 2023/24 had only been "marginally better" and "it needs to do much better". While there had been some progress, it said the improvement in 2023-24 had only been marginal and "it needs to do much better".
News of the latest fine comes at a time when Royal Mail's parent, International Distribution Services, is facing a probable takeover by the Czech billionaire Daniel Kretinsky's EP Group.News of the latest fine comes at a time when Royal Mail's parent, International Distribution Services, is facing a probable takeover by the Czech billionaire Daniel Kretinsky's EP Group.