- Ofcom fines Royal Mail
- Missed service targets
- Customer complaints and disruption
Royal Mail was fined by Ofcom for failing to achieve its delivery targets for first and second class during the previous fiscal year.
The postal service, now owned by FTSE 250-listed International Distribution Services, was fined £5.6 million for not meeting the watchdog’s targets. This follows an increase in complaints against Royal Mail regarding late and infrequent deliveries, and Ofcom has indicated that the service has yet to fully recover from the disruptions caused by the pandemic.
Ofcom requires Royal Mail to deliver 93% of first-class mail in one day and 98.5 percent of second-class in three. Additionally, the postal service must complete 99.9% of delivery routes on each day that a delivery is necessary.
However, Royal Mail only delivered 73.7% of first-class mail and 90.7% of second-class mail on time in the previous year. On days when deliveries were necessary, the postal service could only complete 89.35% of the scheduled routes.
Fine and Response
Ofcom stated that the 30% reduction in the £5.6 million fine “reflects Royal Mail’s admissions of liability and its agreement to settle the case.” HM Treasury must be repaid the monetary penalty within a period of two months.
Ian Strawhorne, director of enforcement at Ofcom, said, “Royal Mail’s role in our lives entails enormous responsibility.” He emphasized that customer research highlights the value of consistency and dependability.
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In previous years, Royal Mail’s operations were undoubtedly profoundly affected by the pandemic. Since we warned the business it could no longer use that excuse, nothing has been able to turn things around. “The fine today should serve as a wake-up call for the company. It has failed its customers and must now assume its obligations more seriously.”
Royal Mail will continue to be held accountable in an effort to ensure that service levels improve.
Readers of ours report Royal Mail service interruption
As we revealed last month, Royal Mail is now delivering mail to several cities and towns less often than weekly. Since then, many people from across the country have told us that their mail has vanished or arrived weeks late.
Nick, a resident of Dorking, Surrey, reported that the last time he received mail was on October 6, and that he had observed the service deteriorate since the summer of 2022. He claims that his water company has assessed him a fine of £50 for late payment due to the fact that the bill was delivered via postal service after the due date.
A reader residing in Sutton, South London, stated that postal deliveries have virtually ceased since their regular postman retired six months ago.
According to an Ofcom investigation, Royal Mail’s senior management did not prioritize letter dispatch over shipments. The exception was recognized contingency plans during the pandemic and last year’s strike action. However, the organisation did express apprehensions regarding what it considered to be “inadequate control, visibility, and oversight over local decision-making at specific delivery offices, where high rates of absence and vacancies may have resulted in customer operations managers…making decisions regarding deliveries on the day.” Ofcom stated that “appropriate training should be provided to managers so they are equipped to make such decisions.”
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