Only three quarters of first class letters are reaching their destination on time, the latest data from Ofcom has revealed. The regulator has now issued a final warning to Royal Mail, threatening to impose fines or open the market to competition if performance does not improve by the end of the year.
The figures, published this morning, show that just 75.5% of first class mail was delivered within one working day in the last quarter. This is far below the legally binding target of 93%. Second class mail fared slightly better but still missed its target of 98.5% delivery within three working days, hitting only 97.5%.
Ofcom chief executive Melanie Dawes said: “Royal Mail has repeatedly failed to meet its obligations. This is not acceptable. If we do not see rapid improvement, we will take enforcement action. That could mean financial penalties, or ultimately, the opening up of the universal service obligation to other providers.”
The warning comes as the postal service battles soaring costs, a drop in letter volumes and ongoing industrial disputes. Workers have staged walkouts over pay and conditions, demanding a real-terms wage increase as inflation eats into household budgets. Postal staff in London, Liverpool and Manchester have voted to strike again next month.
For many households, particularly in rural areas and deprived urban communities, the post remains a lifeline. Pensioners rely on it for prescription deliveries and bills. Small businesses use it to send invoices and goods. Delays hit the most vulnerable hardest.
Margaret Turner, 72, from County Durham, said she had waited two weeks for a hospital appointment letter. “It’s a worrying time. I missed my check-up because it never arrived. These delays are not just inconvenient, they are dangerous.”
Royal Mail pointed to a challenging market and said it was investing in automation and hiring more staff. A spokesperson said: “We are transforming the business to meet changing customer needs. We are working hard to improve service levels and apologise to any customer affected by delays.”
But unions argue that the real problem is underfunding and pressure to cut costs. The Communication Workers Union said management was “squeezing workers while failing the public”.
The regulator’s ultimatum sets a December deadline for improvement. If Royal Mail fails, it could face a fine of up to 10% of its revenue, or a referral to the Competition and Markets Authority. For many communities already struggling with the cost of living crisis, the prospect of further disruption is a bitter pill to swallow.
