Royal Mail could face another substantial penalty for failing to meet letter delivery targets once again. The postal company disclosed that only 75.7% of first-class mail was delivered the next working day, with 96.4% reaching recipients within three days. For second-class mail, 90.2% was delivered within three working days and 98.2% within five days, missing the set targets both for the previous year and the lower thresholds implemented this year.
This situation has led to a significant number of items not arriving on time, aggravated by an increase in stamp prices. First-class stamp prices rose by 10p to £1.80 from April 7, marking a substantial 181% increase compared to 2016 when they were priced at 64p. Similarly, second-class stamps went up by 4p to 91p.
With Ofcom imposing a £21 million penalty on Royal Mail for missing targets in the prior financial year, the company is at risk of facing another fine. Despite attributing the issues to a challenging start to the year, Royal Mail stated that performance was gradually improving. By March, the company reported delivering 81.1% of first-class mail within one working day and 90.2% of second-class mail within three working days.
Citizens Advice’s Director of Policy, Tom MacInnes, criticized Royal Mail for consistently missing delivery targets over the past six years. He expressed concern that the company might not meet the new, lower delivery targets set by Ofcom for another year, causing further delays for customers paying higher stamp prices.
During a parliamentary session in March, Royal Mail’s owner, Daniel Kretinsky, apologized for delivery issues but denied claims that the situation was worsening. Chief Operating Officer Jamie Stephenson emphasized the company’s ongoing efforts to enhance reliability and meet new delivery targets, highlighting the introduction of a new delivery model across the network to drive lasting improvements.
Royal Mail aims to implement the new delivery model nationwide by the Christmas peak season, with clear quarterly targets set for network enhancements. Early performance indicators suggest that the company is on track with its improvement plan.
