Royal Mail Misses On-Time Delivery Targets as Regulator Prepares Probe

Royal Mail delivered just 75.7% of first-class letters on time during the financial year ending in March, a figure that falls significantly short of its 93% performance goal. The latest quality-of-service report highlights the postal service's struggles under its new private owner, Daniel Kretinsky’s EP Group, which completed its takeover following shareholder approval in late April of the previous year.

Regulator Ofcom expressed being "very concerned" by these statistics. According to the BBC, the watchdog is anticipated to launch an investigation into Royal Mail’s operational performance early next week.

In response to the declining metrics, Royal Mail maintains that its service is gradually improving and remains on schedule to meet revised, lower targets: 90% for first-class delivery and 95% for second-class delivery within the next year. Chief Operating Officer Jamie Stephenson emphasized that while the company is injecting substantial capital to enhance reliability, transforming a network of such magnitude is a long-term endeavor. "Delivering lasting change across a network of this scale takes time," Stephenson stated. As part of its broader improvement strategy, the firm has pledged to invest £500 million over the next five years.

The annual data, released on Friday, indicates a regression in performance compared to the prior year when Royal Mail was publicly traded on the London stock market. During that period, 76.9% of first-class and 92.2% of second-class letters were delivered on time. In contrast, this year’s results show that only 90.2% of second-class letters arrived within three working days, well below the 98.5% target.

These results mark a significant lag in meeting regulatory benchmarks. It has been a decade since Royal Mail last achieved its first-class delivery targets and six years since it met those for second-class post. The service experienced a notable downturn during the pandemic and has yet to fully regain its previous efficiency levels. Consequently, Ofcom imposed a £21 million fine on Royal Mail last October for missing targets—the third-largest penalty levied by the communications regulator. The company was also penalized in 2023 and 2024 for substandard performance.

Tensions have escalated regarding workload priorities. In February, postal employees informed the BBC that letters had been delayed for weeks because staff were instructed to prioritize parcel deliveries, which generate higher profits. These allegations were addressed during a parliamentary select committee hearing in March. While Kretinsky apologized to MPs for any late arrivals, he denied claims that parcels were being favored. "I have never heard any instruction or discussion, and have not participated in any exchange, that would sanction that Royal Mail is prioritising parcels over letters," he asserted.

Critics argue that the situation is unacceptable. Tom MacInnes, policy director at Citizens Advice, described the poor performance as "business as usual." He highlighted the frustration of consumers, noting, "What's worse, 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 has implemented several changes, including allowing part-time postal workers to extend their hours. Additionally, the company has agreed with Ofcom to eliminate Saturday second-class deliveries as part of a new operational model. Ofcom has simultaneously lowered the regulatory benchmarks, effective this past April. Under the new standards, 90% of first-class letters must arrive by the next working day, and 95% of second-class letters must be delivered within three days. Ofcom justified the adjustment by noting that previous targets were "more stretching" than those in comparable European nations and would have incurred higher costs, necessitating price increases.

Source: BBC News Generated at: 2026-05-29 15:51:39 UTC