UK Independent. Sourced. Primary. · Est. 2024
Home Royal Mail Delivery Problems UK: Ofcom Investigation, Fines and the Improvement Plan

Royal Mail Delivery Problems UK: Ofcom Investigation, Fines and the Improvement Plan

Ofcom opened an investigation into Royal Mail on 1 June 2026 after it delivered only 75.7% of First Class mail on time against a 93% target. Four years of failures, £37m+ in fines and the 2027 improvement plan.

CT
Chandraketu Tripathi
Finance Editor, Kaeltripton
Published 22 Jun 2026
Last reviewed 22 Jun 2026
✓ Fact-checked
Royal Mail Delivery Problems UK: Ofcom Investigation, Fines and the Improvement Plan

Illustrative image. AI-generated and does not depict real people, places or events.

Advertisement

Key takeaways

On 1 June 2026, Ofcom opened a formal investigation into Royal Mail's delivery performance for 2025/26 after the company published results showing it missed both its First Class and Second Class delivery targets by a wide margin.

Royal Mail delivered 75.7% of First Class mail the next working day in the year ending March 2026 -- against a target of 93%. Only 90.2% of Second Class mail was delivered within three working days -- against a target of 98.5%.

This is the fourth consecutive year Royal Mail has missed its delivery targets. Ofcom has fined Royal Mail more than 37 million pounds in total for delivery failures since 2023: 5.6 million in November 2023, 10.5 million in December 2024 and 21 million in October 2025.

From 1 April 2026, Ofcom modernised Royal Mail's targets. The new targets are 90% of First Class mail next-day and 95% of Second Class within three days. Royal Mail will be held to these revised targets going forward.

Royal Mail has committed to return to regulated delivery targets by April 2027 and to invest 500 million pounds over five years. It expects to complete rollout of its new alternate-weekday delivery model by Christmas 2026.

Reviewed: June 2026

Key facts

  • Investigation opened: 1 June 2026 -- Ofcom investigating 2025/26 delivery performance
  • First Class 2025/26: 75.7% delivered next day (target was 93%) -- 17.3 percentage points short
  • Second Class 2025/26: 90.2% delivered within 3 days (target was 98.5%) -- 8.3 points short
  • Total fined to date: £37m+ across 2022/23, 2023/24 and 2024/25
  • Oct 2025 fine: £21m (2024/25 breach) -- largest single fine to date
  • New targets from Apr 2026: 90% First Class next-day; 95% Second Class within 3 days
  • New model: Second Class letters on alternate weekdays (agreed with CWU)
  • Royal Mail commitment: £500m investment over 5 years; targets met by April 2027
  • Rollout timeline: new delivery model complete by Christmas 2026
  • Mail volumes: fallen from 20bn letters/year two decades ago to 6.5bn in 2025
ROYAL MAIL DELIVERY PERFORMANCE vs TARGETS (2025/26)First Class: target 93% next-day75.7% achievedSecond Class: target 98.5% within 3 days90.2% achievedData: Royal Mail quality of service results year ending March 2026, published 29 May 2026. Source: Ofcom investigation, 1 Jun 2026.

What Ofcom found and why it opened an investigation

On 29 May 2026, Royal Mail published its annual quality of service results for the year ending 31 March 2026. The results showed the company had again failed to meet both its primary delivery obligations. First Class mail, which was required to be delivered the next working day in 93% of cases, was actually delivered on time in only 75.7% of cases -- a shortfall of more than 17 percentage points. Second Class mail, required to arrive within three working days 98.5% of the time, was actually delivered on time in 90.2% of cases.

These figures represent the nationwide annual average, excluding the Christmas period. Ofcom measures Royal Mail's performance through independently audited testing of hundreds of thousands of mail items sent each year. Performance in individual postcode areas is published in Royal Mail's quarterly performance reports; in 2025/26, Royal Mail did not achieve its First Class target in any postcode area in the country.

On 1 June 2026, Ofcom opened a formal investigation. Ofcom's Enforcement Director Ian Strawhorne stated: 'A reliable postal service is vital to many people across the country. We share the deep frustrations of customers who have missed important letters because of Royal Mail's consistent failure to improve its service over the years.'

OFCOM ROYAL MAIL FINES -- ESCALATING PENALTIESNov 2023 -- 2022/23 breach£5.6m fineDec 2024 -- 2023/24 breach£10.5m fineOct 2025 -- 2024/25 breach£21m fineTotal fined: £37m+. 2025/26 investigation open (Jun 2026) -- penalty TBC. Source: Ofcom.

The escalating fines: four years of failure

The 2025/26 investigation is the latest in a series of formal enforcement actions against Royal Mail for delivery failures. Ofcom did not find Royal Mail in breach of its regulatory obligations in 2021/22 (the final year affected by Covid-19) or the two preceding years, due to the pandemic's impact. Since then, every year has resulted in enforcement action.

YearBreachFineDate of fine
2022/23Missed First and Second Class targets£5.6 millionNovember 2023
2023/24Missed First and Second Class targets£10.5 millionDecember 2024
2024/25Missed First and Second Class targets£21 millionOctober 2025
2025/26Investigation open -- penalty TBCTBC2026 (investigation ongoing)

The escalation in fine levels -- from 5.6 million to 10.5 million to 21 million -- reflects Ofcom's stated intention to increase penalties proportionate to the persistence of the failure. Total fines issued to Royal Mail for delivery failures now exceed 37 million pounds.

Why Royal Mail has been missing targets

Royal Mail's delivery performance has been affected by several factors. Mail volumes have fallen dramatically -- from approximately 20 billion letters annually two decades ago to 6.5 billion in 2025. This collapse in volume has made the economics of six-day universal delivery increasingly difficult to sustain at the same quality level, while the company simultaneously manages the cost of its workforce and infrastructure.

Royal Mail has also faced industrial relations challenges with the Communication Workers Union (CWU), which has delayed the implementation of its new delivery model. The new model -- which allows Second Class letters to be delivered on alternate weekdays rather than six days a week -- was agreed in principle but took almost a year to begin implementing after Ofcom's July 2025 regulatory reform.

Ofcom also noted concerns about parcel prioritisation -- the question of whether Royal Mail has been deprioritising letter delivery in favour of parcels, which are more commercially valuable. The 2025/26 investigation will specifically examine this question as part of its assessment of whether Royal Mail breached its regulatory obligations.

Ofcom's July 2025 regulatory reforms

In July 2025, Ofcom modernised the obligations placed on Royal Mail to reflect the steep decline in mail volumes. The reforms introduced three main changes. First, Royal Mail is now permitted to deliver Second Class letters on alternate weekdays rather than six days a week -- though still within three working days of collection. Second, the headline delivery targets were adjusted: First Class from 93% to 90% next-day, and Second Class from 98.5% to 95% within three days. Third, new backstop targets were added: 99% of First Class mail must arrive within three days, and 99% of Second Class within five days.

These revised targets apply from 1 April 2026 (the 2026/27 regulatory year). The 2025/26 investigation covers the period when the old, higher targets still applied. Royal Mail will be held to the new, slightly easier targets going forward.

Royal Mail's improvement plan

Royal Mail has committed to return to regulated delivery performance targets by April 2027 and to invest 500 million pounds in its network over the next five years. The improvement plan, published in April 2026, sets out quarter-by-quarter milestones towards meeting delivery targets and includes commitments to tackle the worst-performing delivery offices specifically.

The company expects to complete the rollout of its new alternate-weekday delivery model by Christmas 2026. This model -- now agreed with the CWU following the resolution of the industrial dispute -- is central to the improvement plan. Alternate-weekday Second Class delivery allows Royal Mail to maintain its workforce structure while reducing the frequency of less commercially viable letter rounds.

How to complain about Royal Mail delivery

If you have experienced delayed, lost or damaged Royal Mail deliveries, the process is to contact Royal Mail directly through its formal complaints process at royalmail.com. Royal Mail aims to respond to complaints within 30 days. If the complaint is not resolved to your satisfaction, you can escalate to POSTRS -- the Postal Redress Service -- which provides Alternative Dispute Resolution for postal service complaints.

Ofcom does not investigate individual complaints about postal services but does publish guidance on complaining about Royal Mail at ofcom.org.uk. Citizens Advice also provides guidance. For businesses with significant mail volume, Ofcom and Citizens Advice can both advise on regulatory rights if delivery failures are causing material harm.

Disclaimer: This guide is for informational purposes only. Kael Tripton Ltd is not regulated by the FCA. Information sourced from Ofcom, legislation.gov.uk and GOV.UK. Verify at ofcom.org.uk.

Frequently asked questions

Why is Royal Mail so slow?

Royal Mail has missed its delivery targets for four consecutive years. In 2025/26, it delivered First Class mail on time in only 75.7% of cases against a 93% target. Contributing factors include the collapse in letter volumes (from 20bn to 6.5bn annually over two decades), delays in implementing a new delivery model due to industrial relations issues, and questions about parcel prioritisation over letters. Ofcom opened a formal investigation on 1 June 2026.

Has Royal Mail been fined for slow deliveries?

Yes. Ofcom has fined Royal Mail more than 37 million pounds for delivery failures since 2023: 5.6 million for 2022/23 breaches, 10.5 million for 2023/24 and 21 million for 2024/25. A further investigation into 2025/26 performance is open as of June 2026; the penalty for that year has not yet been determined.

What are Royal Mail's delivery targets?

From 1 April 2026 (the 2026/27 regulatory year), Royal Mail's targets are: 90% of First Class mail delivered the next working day, and 95% of Second Class mail delivered within three working days. New backstop targets also apply: 99% of First Class within three days and 99% of Second Class within five days. Before April 2026 the targets were 93% First Class next-day and 98.5% Second Class within three days.

What is Ofcom investigating Royal Mail for in 2026?

Ofcom opened an investigation on 1 June 2026 into Royal Mail's compliance with its quality of service obligations during 2025/26. The investigation will examine whether Royal Mail breached DUSP condition 1.9.1 (its delivery performance obligations), including the question of parcel prioritisation. Where a breach is found, Ofcom will consider imposing a financial penalty.

What is Royal Mail's plan to improve deliveries?

Royal Mail published a Quality of Service Improvement Plan in April 2026 committing to return to regulated delivery targets by April 2027 and invest 500 million pounds over five years. The plan centres on rolling out a new alternate-weekday delivery model for Second Class mail (agreed with the Communication Workers Union) by Christmas 2026, plus targeted support for the worst-performing delivery offices.

Can Second Class mail now be delivered every other day?

Yes, from July 2025. Ofcom's regulatory reforms allow Royal Mail to deliver Second Class letters on alternate weekdays rather than six days a week. The mail must still arrive within three working days of collection. This change was designed to help Royal Mail improve financial viability as letter volumes decline. First Class mail continues to be delivered six days a week.

How do I complain about Royal Mail?

Contact Royal Mail directly through its complaints process at royalmail.com. If your complaint is not resolved within 30 days or you are unhappy with the response, escalate to POSTRS (the Postal Redress Service) -- the independent Alternative Dispute Resolution scheme for postal complaints. Ofcom does not investigate individual complaints but publishes guidance at ofcom.org.uk/make-a-complaint/complain-about-postal-services.

What is the universal service obligation for Royal Mail?

Royal Mail must deliver letters to every address in the UK, six days a week, at a uniform price. This is the universal postal service obligation, established under the Postal Services Act 2011. Ofcom regulates Royal Mail's compliance with this obligation, including setting and enforcing delivery performance targets. The obligation ensures that even remote or rural addresses receive the same postal service at the same price as city centre addresses.

Advertisement

Editorial Disclaimer

The content on Kaeltripton.com is for informational and educational purposes only and does not constitute financial, investment, tax, legal or regulatory advice. Kaeltripton.com is not authorised or regulated by the Financial Conduct Authority (FCA) and is not a financial adviser, mortgage broker, insurance intermediary or investment firm. Nothing on this site should be construed as a personal recommendation. Rates, figures and product details are indicative only, subject to change without notice, and should always be verified directly with the relevant provider, HMRC, the FCA register, the Bank of England, Ofgem or other appropriate authority before any financial decision is made. Past performance is not a reliable indicator of future results. If you require regulated financial advice, please consult a qualified adviser authorised by the FCA.

CT
Chandraketu Tripathi
Finance Editor · Kaeltripton.com
Chandraketu (CK) Tripathi, founder and lead editor of Kael Tripton. 22 years in finance and marketing across 23 markets. Writes on UK personal finance, tax, mortgages, insurance, energy, and investing. Sources: HMRC, FCA, Ofgem, BoE, ONS.

Stay ahead of your money

Free UK finance guides, rate changes and money-saving tips — straight to your inbox. No spam, unsubscribe anytime.

Latest posts

📋 In this guide
Advertisement

Get Kael Tripton in your Google feed

⭐ Add as Preferred Source on Google