Royal Mail Misses Regulator Delivery Targets, Citing Industrial Action Impact
Royal Mail has once again failed to meet its regulated delivery targets for the 2023-24 financial year, according to its latest performance report. Despite recording an improvement over the preceding year, the company did not achieve the standards set by the communications regulator, Ofcom, for both First and Second Class mail.
Performance and Regulatory Breaches
For First Class deliveries, Royal Mail achieved 82% of its mail arriving within one working day, falling short of the 93% target. Second Class mail saw 95.7% delivered within three working days, against a 98.5% target. The company also missed its target for the delivery of First Class mail on Saturday, achieving 80.6% against a 91.5% goal.
These figures represent breaches of Royal Mail's Universal Service Obligation (USO), which mandates a six-day-a-week postal service at a uniform price across the United Kingdom. Ofcom has previously levied penalties for similar failures, including a £5.6 million fine in November 2023 for missed targets during the 2022-23 period.
Industrial Action as a Factor
Royal Mail explicitly stated that its performance had been “significantly impacted by the industrial action” that occurred throughout the reporting period. The company highlighted that operational adjustments were implemented to mitigate the effects of strikes, with a focus on clearing backlogs when industrial action concluded.
The postal service's statement indicated that while these measures improved performance following the industrial disputes, they were insufficient to meet the regulatory thresholds. Ofcom is currently reviewing Royal Mail's compliance with its obligations, with the possibility of further enforcement action.
