Royal Mail has been hit with a £21 million fine after again failing to meet its annual delivery standards, with regulator Ofcom saying millions of letters across the UK arrived late.
The watchdog found that in the 2024–25 financial year, the postal operator delivered just 77% of first-class mail on time, below its 93% target, and 92.5% of second-class post, short of the 98.5% requirement.
It marks the third consecutive year Royal Mail has been penalised for missing its performance goals, making this the third-largest fine Ofcom has ever issued.
Ofcom said it had considered the impact of severe weather, including storms and flooding, but concluded the company still underperformed between April 2024 and March 2025. The fine was reduced from £30 million after Royal Mail admitted the breaches and agreed to settle.