Ofcom has levied a £10.5 million fine on Royal Mail for failing to meet its post delivery targets during the 2023-2024 financial year.

This latest penalty follows a previous fine of £5.6 million issued in November 2023, marking the second fine imposed on Royal Mail in just two years.

Ian Strawhorne, Ofcom's director of enforcement, highlighted that Royal Mail's declining service quality is eroding public trust in one of the UK's oldest institutions.

In the year ending March 2024, Royal Mail reported that only 74.7% of first-class mail was delivered on time, significantly below the 93% target, while second-class mail met 92.7% of its 98.5% target.

Amid rising costs and pressures from the Labour government's first budget in 14 years, Royal Mail's parent company is contemplating job cuts and increasing stamp prices.

Royal Mail has called for urgent reform of its universal service obligation, which currently mandates six-day letter deliveries and five-day parcel deliveries, arguing that these requirements no longer align with modern customer needs.

Royal Mail attributed its service failures to a challenging financial position and delays linked to industrial action, but Ofcom deemed these justifications insufficient.

Despite the fines, Royal Mail has submitted an improvement plan and is showing some signs of progress, although it needs to accelerate its efforts to meet customer expectations.

Consumers are experiencing less reliable service despite regular price increases, and Ofcom's fine underscores the ongoing issues facing Royal Mail.

Tom MacInnes from Citizens Advice criticized Royal Mail for not meeting delivery targets for nearly five years, emphasizing the negative impact on consumers awaiting important documents.

In response to these challenges, Royal Mail has acknowledged the importance of high-quality service and is implementing changes to enhance delivery performance.

The fine arrives as Czech billionaire Daniel Kretinsky's £3.57 billion takeover bid for Royal Mail nears completion, pending government review under the National Security and Investment Act.