Royal Mail misses annual delivery targets but hails progress amid ยฃ500m plan


Royal Mail has missed its delivery targets for another year, but said more first-class mail has been sent on time over recent weeks after pledging to invest ยฃ500 million in improving its service.

Some 75.7% of first-class mail arrived the next working day over the 12 months to the end of March, according to the latest quality of service report.

This was slightly less than the 76.3% achieved the prior year.

Royal Mail pointed to a ยฃ500 million investment (Andrew Matthews/PA)
Royal Mail pointed to a ยฃ500 million investment (Andrew Matthews/PA) (PA Archive)

For second-class mail, 90.2% was delivered within three working days โ€“ less than the 92.2% achieved the year before.

It means Royal Mail missed delivery targets set by regulator Ofcom for another year running.

Under the watchdogโ€™s targets, 90% of first-class mail should be delivered the next day, and 95% of second-class mail should be delivered within three days.

Royal Mail said it had been a challenging start to the year, and that storms Goretti and Chandra as well as more staff off sick from the flu had affected its performance over the winter.

The company was fined ยฃ21 million by Ofcom in October last year for missing its annual targets โ€“ the third-largest fine ever imposed by the communications watchdog.

Ofcom said at the time that it was โ€œunacceptableโ€ that millions of important letters were arriving late.

Despite performance weakening in the past year, Royal Mail has pointed to signs of improvement within its service over more recent weeks since the end of the last reporting period.

It has consistently been delivering more than 80% of first-class mail on time over April and May, according to the business, following an improved performance at the start of the year.

It comes as Royal Mail has pledged to meet new delivery targets by May next year as part of a plan to invest ยฃ500 million in the service over the next five years.

It has begun to phase in a new letter delivery model nationwide, subject to a consultation with union members, which will see it scrap second-class post on Saturdays.

Royal Mail has said it will invest ยฃ500 million in improving its delivery performance (Royal Mail/PA)
Royal Mail has said it will invest ยฃ500 million in improving its delivery performance (Royal Mail/PA) (PA Media)

The reforms also involve delivering second-class post every other weekday only.

Royal Mail said the changes and planned investment will lead to it improving first-class next-day delivery to around 85% within nine months of the reforms being brought in, before reaching the 90% target set by regulator Ofcom within a year.

The firm also vowed to deliver 93% of second-class letters in three days within the space of nine months, and hit the 95% target by May next year.

The results of a ballot put to members of the Communication Workers Union (CWU) over the agreed plan is due to be released on Friday.

Jamie Stephenson, Royal Mailโ€™s chief operating officer, said: โ€œWeโ€™re putting significant investment into improving reliability and reaching these new delivery targets, but delivering lasting change across a network of this scale takes time.

โ€œWe have a plan to deploy the new delivery model to all delivery offices across the country by the Christmas peak period and have set clear targets for each quarter as changes are introduced across the network.

โ€œEarly performance this year shows we are tracking in line with the plan and moving in the right direction.โ€

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