UK regulator Ofcom has fined Royal Mail £1.5m for missing its first class delivery targets in 2018/2019.
It was meant to deliver at least 93% of first-class post across the UK within one working day of collection but only managed to deliver 91.5% on time. Ofcom said the company’s performance improved in 2019/2020 after taking into account the impact of Covid-19.
Royal Mail was also hit with a £100,000 fine for overcharging customers for second class stamps between 25 March and 31 March last year.
The company increased the price for stamps from 60p to 61p ahead of a price cap increase on 1 April, which meant it overcharged customers by a total of £60,000, which it is unable to refund.
Royal Mail has said: “We accept and understand Ofcom’s decision.”
The fines will be handed over to the Treasury.
Gaucho Rasmussen, Ofcom’s director of investigations and enforcement, said: “Many people depend on postal services, and our rules are there to ensure they get a good service, at an affordable price.
“Royal Mail let its customers down, and these fines should serve as a reminder that we’ll take action when companies fall short.”