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Royal Mail Regulator Ofcom said it has been fined £21 million for failing to meet annual first and second class mail delivery targets, which led to millions of letters being delayed across Britain.
This is the third largest fine ever imposed by the communications watchdog.
Ofcom found that the delivery giant delivered 77% of first class mail and 92.5% of second class mail on time during the 2024-25 financial year.
This was below their respective targets of 93% and 98.5%.
Ian Strawhorn, Ofcom’s director of enforcement, said: “Millions of vital letters are arriving late, and people are not receiving the amount they paid for when they bought the stamp.
“These continued failures are unacceptable, and customers expect and deserve better.
“Royal Mail must urgently rebuild consumer confidence. And that means making real significant improvements, not more empty promises.”