Royal Mail Misses 93% First Class Delivery Target, Regulator Ofcom Expresses Concern

Royal Mail's quality-of-service report for the year ending March reveals a substantial failure to meet delivery targets, with just 75.7% of first class letters arriving on time. This figure is a considerable deviation from its mandated 93% target and represents a decline from the previous year's 76.9%.

The regulator, Ofcom, has expressed "very concerned" about these performance metrics. An official investigation into Royal Mail's operations is anticipated to commence early next week. This comes after Ofcom previously fined Royal Mail £21 million in October last year for similar target failures, marking the third-largest fine issued by the communications watchdog.

Royal Mail, under the new private ownership of Daniel Kretinsky's EP Group since April last year, states that service is improving and aims to achieve new, reduced targets of 90% for first class and 95% for second class delivery by next year. Chief operating officer Jamie Stephenson indicated that reaching these goals will require significant investment and time, with £500 million allocated over the next five years for improvement initiatives.

The company also failed to meet its second class delivery target, with only 90.2% delivered within three working days against a 98.5% goal. This marks a decade since Royal Mail last met its first class letter delivery targets and six years for second class.

In February, postal workers alleged that some letters were left undelivered for weeks, with a directive to prioritise more profitable parcel deliveries. Royal Mail executives, including Kretinsky, appeared before a parliamentary select committee in March, where Kretinsky denied any instruction to prioritise parcels over letters.

Citizens Advice policy director Tom MacInnes described Royal Mail's performance as "business as usual," highlighting the further year customers are expected to wait for the company to meet even its revised, lower targets. Ofcom has since April this year reduced Royal Mail's targets to 90% for first class and 95% for second class deliveries, citing that previous targets were more demanding and costly compared to other European nations.