Ofcom Given Six-Month Deadline to Improve Oversight of Royal Mail

A parliamentary committee has given Ofcom six months to show it can effectively regulate Royal Mail after the postal operator missed performance targets for first-class mail. 1 percentage points below the required target. The shortfall affected an estimated 126 million letters and contributed to missed hospital appointments, delayed benefit decisions, and late-arriving fines.

Committee report noted that Royal Mail has paid fines every year since 2022 yet has not met its mandated targets. The committee also cited a 50 percent increase in the number of people experiencing delays during the Christmas period compared with the previous year.

The report questioned whether Ofcom had received sufficient data on late deliveries, stating that Royal Mail had declined to provide figures on commercial confidentiality grounds. Committee members said rules preventing disclosure should be reviewed if they exist.

An Ofcom spokesperson said the regulator has fined Royal Mail more than £37 million and required an improvement plan backed by investment. The spokesperson added that Royal Mail must now implement reforms after reaching a modernization agreement with its union that includes £500 million in planned spending.

Dave Ward, general secretary of the Communication Workers Union, said Ofcom has not adequately addressed customer service issues, staffing levels, or labor practices used by competing delivery firms. He called for changes that would allow stronger regulatory oversight.

The committee stated that if Ofcom does not achieve better results within six months, the Secretary of State should consult on statutory changes to update the regulator's powers for the current postal market.