Royal Mail has again failed to meet its delivery targets for first and second-class post, though the company stated it is making progress as part of its ongoing turnaround plan. Between March and June, Royal Mail delivered 85% of its first-class mail the next day, an increase from 76% in the same period last year, but still below Ofcom's 90% target. Second-class mail was delivered within three days 91% of the time, also an improvement from the previous year, but short of the 95% target set by the regulator.
Despite missing the set benchmarks, Royal Mail described the results as "encouraging" and indicative that its efforts to improve service are having a positive effect. Chief operating officer Jamie Stephenson noted that first-class performance is ahead of projections for this stage of their Improvement Plan, while second-class performance is in line with the plan. He acknowledged that further work is necessary, highlighting a £500 million investment over the next five years aimed at enhancing the firm's operations. A key commitment within this plan is to meet Ofcom's delivery targets by May 2027.
The company, owned by International Distribution Services (IDS), has faced significant challenges, including increased competition, a decline in letter volumes, and regulatory fines for not meeting performance standards. It is currently under investigation by Ofcom for the second consecutive year due to its failure to meet delivery targets. Last October, the regulator imposed a record £21 million fine on Royal Mail for missing targets in the 2024-25 fiscal year.
In March, reports emerged of postal workers being instructed to move or hide mail to create the appearance of meeting delivery goals. Royal Mail had previously apologized to residents in Gloucester for service failures that led to mail being delayed for months, admitting the situation was "totally unacceptable." More recently, customers in Worcestershire reported weeks-long delays for important mail, with some missing hospital appointments.
IDS was acquired in 2025 by Czech billionaire Daniel Kretinsky. Royal Mail plans to invest £500 million over five years to implement significant changes across its network, a move that Stephenson stated is supported by the hard work of frontline employees, even amidst challenging conditions like extreme heat.