News
Royal Mail fined £21m by Ofcom failing to meet its delivery targets
It's the third year in a row the company's been fined.
Emily Sergeant -
15th October 2025 
Ofcom has fined Royal Mail a whopping £21 million for failing to meet its delivery targets in the last financial year.
Each year, it’s the watchdog’s job to look at and measure Royal Mail’s delivery performance against nationwide annual delivery targets, and for the 2024/25 season, the company was required to deliver 93% of First Class mail within one working day of collection, and 98.5% of Second Class mail within three working days.
If Royal Mail misses its annual targets, Ofcom will first consider evidence of any ‘exceptional circumstances’ beyond the company’s control, and whether it would have achieved its targets had those events not occurred.
However, even after accounting for extreme weather events, Royal Mail was still found to have fallen short of its targets… and this time, they’ve been fined their highest sum so far.
We have fined Royal Mail £21m for missing its 2024/25 delivery targets, without justification.
— Ofcom (@Ofcom) October 15, 2025
The company must now urgently publish, and deliver, a credible improvement plan.
More 🔗https://t.co/cnrfgnMTDh pic.twitter.com/PbJvhg7Jcp
This is the third time in a row that Ofcom has found the company to be in breach of its regulatory obligations, after it was first fined a substantial £5.6m in November 2023, and then a further £10.5m in December 2024.
Royal Mail only delivered 77% of First Class mail and 92.5% of Second Class mail on time between April 2024 and March 2025.
Ofcom says it has therefore decided that the company breached its obligations by failing to provide ‘an acceptable level of service’ without justification, and took ‘insufficient and ineffective’ steps to try and prevent this failure.
“Hiding behind the pandemic as a driving factor in failures at Royal Mail does not cut it.”
The watchdog says this is likely to have impacted millions of customers who did not get the service they paid for.
“Millions of important letters are arriving late, and people aren’t getting what they pay for when they buy a stamp,” explained Ian Strawhorne, who is the Director of Enforcement at Ofcom.
“These persistent failures are unacceptable, and customers expect and deserve better.
“Royal Mail must rebuild consumers’ confidence as a matter of urgency, and that means making actual significant improvements, not more empty promises.
Read more:
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“We’ve told the company to publicly set out how it’s going to deliver this change, and we expect to start seeing meaningful progress soon. If this doesn’t happen, fines are likely to continue.”
Featured Image – Royal Mail
