Headlines
UK regulator fines Royal Mail record $28 million for missing delivery targets
Published by Global Banking and Finance Review
Posted on October 15, 2025
2 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on October 15, 2025
2 min readLast updated: January 21, 2026
Royal Mail fined £21 million by Ofcom for missing delivery targets, marking the largest penalty yet. The company has missed targets for seven years.
(Reuters) -Britain's telecom and media regulator on Wednesday fined Royal Mail 21 million pounds ($28.1 million), its largest penalty to date on the post and parcel group, for missing delivery targets for 2024–25.
The more than 500-year-old Royal Mail, whose iconic red post boxes with the Royal Crest dot Britain, has been trying to modernize operations to boost volumes, while the regulator, Ofcom, too has revised some of its targets to prevent delays.
The group has missed delivery targets for at least seven years now. This is Ofcom's third consecutive annual penalty on the company, after it fined 5.6 million pounds for 2022-23 and 10.5 million pounds for 2023-24. The regulator did not levy any penalties on Royal Mail during the COVID-19 pandemic.
Ofcom on Wednesday also warned that the levies are likely to continue unless improvements are made by Royal Mail.
"Millions of important letters are arriving late, and people aren't getting what they pay for when they buy a stamp," Ian Strawhorne, director of enforcement at Ofcom, said in a statement, adding that the repeated failures were "unacceptable."
Royal Mail acknowledged the regulator's decision in a separate statement and said the pilot changes it has implemented to its "Universal Service" model have shown positive results.
Royal Mail is owned by International Distribution Services, which was taken private after its takeover by Czech billionaire Daniel Kretinsky.
($1 = 0.7481 pounds)
(Reporting by Dhanush Vignesh Babu and Pushkala Aripaka in Bengaluru; Editing by Mrigank Dhaniwala and Rashmi Aich)
A regulatory framework is a set of rules and guidelines that govern how organizations operate within a specific industry. It ensures compliance with laws and regulations, promoting fair practices and protecting consumers.
Financial penalties are monetary fines imposed on individuals or organizations for violating laws or regulations. These penalties serve as a deterrent and encourage compliance with legal standards.
Customer service refers to the assistance and support provided to customers before, during, and after purchasing products or services. It aims to enhance customer satisfaction and build loyalty.
Delivery targets are specific goals set by organizations regarding the timely delivery of products or services. Meeting these targets is crucial for customer satisfaction and operational efficiency.
Explore more articles in the Headlines category
