Royal Mail faces Ofcom probe over mail delivery failures in the UK

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Royal Mail Ofcom probe UK

Highlights

Ofcom has launched an investigation into Royal Mail's delivery failures after first-class on-time performance fell to 75.7% versus a 93% target in the year to March.
Royal Mail will implement a £500 million plan from April, reducing second-class deliveries to alternate weekdays and ending Saturday service to enhance delivery rates.
Ofcom's latest probe follows new targets—90% for first-class and 95% for second-class post—and assesses whether Royal Mail has prioritized parcels over letters.

Regulator examines service shortfalls and reform pace

As reported by Financial Times, UK communications regulator Ofcom has opened an investigation into Royal Mail over what it describes as unacceptable delivery performance and delays in implementing promised reforms. The watchdog says the postal operator has begun to make progress, but that it took nearly a year to start putting its improvement plan into effect.

Royal Mail reported on Friday that it delivered about 75.7 per cent of first-class mail on the next working day in the year to March, well below its previous 93 per cent target. It also says only 90.2 per cent of second-class post arrived within three working days, short of the 98.5 per cent goal.

Ofcom says the latest probe also assesses whether Royal Mail is prioritising parcels over letters when determining compliance with its regulatory duties. The regulator adds that it will take into account any exceptional events beyond the company's control.

Operational changes and pressure on customer service

The investigation comes after new Ofcom delivery targets for Royal Mail take effect in April, requiring 90 per cent of first-class post and 95 per cent of second-class post to arrive on time. In April, the company says it will scale back some delivery services under a £500 million plan designed to improve performance.

Those changes include moving second-class deliveries to every other weekday and ending them on Saturdays, while first-class mail continues to be delivered from Monday to Saturday. Royal Mail says the measures, effective from last month, are expected to lift first-class next-day delivery rates to about 85 per cent within nine months and 90 per cent within a year.

Ofcom has previously fined the company more than £37 million for earlier failures. Ian Strawhorne, enforcement director at Ofcom, says the regulator shares the deep frustrations of customers who have missed important letters because of Royal Mail's service problems.

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