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91.5% of first-class post was delivered next working day in 2018/19, against a target of 93%
Royal Mail also fined £100k for overcharging customers for second-class stamps last year
Ofcom has today fined Royal Mail £1.5m for failing to meet its regulatory first-class delivery target in 2018/19.
Royal Mail is required by Ofcom to deliver at least 93% of first-class post – across the UK – within one working day of collection. In 2018/19, 91.5% of first-class post was delivered on time.[1]
Ofcom can consider evidence submitted by Royal Mail of any exceptional circumstances, beyond the company’s control, that may have explained why it missed the target by such a significant amount. But it did not provide a satisfactory explanation and it did not take sufficient steps to get back on track during the year.
So we have decided to impose a fine of £1,500,000 on Royal Mail for failing to meet its first-class delivery target.
Royal Mail’s performance improved in 2019/20, and after taking into account the impact of Covid-19, the company met its regulatory obligations.
Additional £100,000 fine
Ofcom has also fined Royal Mail £100,000 for overcharging customers for second-class stamps between 25 March and 31 March last year.
We set a price cap for second-class stamps to ensure that an affordable postal service is available to everyone, while keeping the universal service financially sustainable.
For 1 April 2018 to 31 March 2019 the cap was set at 60p. Royal Mail increased its price for second-class stamps to 61p on 25 March 2019, thereby overcharging customers for seven days until the cap increased on 1 April 2019.
The company estimated that it overcharged people by approximately £60,000 in total as a result, which it is unable to refund.
Given the harm caused and failure in its processes to stick to the price cap, we have decided to fine Royal Mail £100,000. It has since made changes to its compliance processes that it says will prevent this error from happening again.
Royal Mail has co-operated with our investigations and did not contest our findings. The fines will be passed on to HM 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.”
NOTES TO EDITORS
1. After considering evidence put forward by Royal Mail, we decided to adjust its performance to take into account the impact of Highways England’s road investment programme on the company’s delivery performance. Despite this adjustment, Royal Mail still failed to achieve its first-class delivery target by 1.1%.
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Royal Mail fined 1.5m for missing 2018/19 delivery target
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POSTMAN
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Royal Mail fined 1.5m for missing 2018/19 delivery target
I Wrote-During Covid-Which is still relevant now
It's good to get these types of threads, the ridiculous my manager said bollox, so we can reassure ourselves that while the world is falling apart, Royal Mail managers are still being the low-life C***S they have always been.
My BFF Clash
The daily grind of having to argue your case with an intellectual pigmy of a line manager is physically and emotionally draining.
It's good to get these types of threads, the ridiculous my manager said bollox, so we can reassure ourselves that while the world is falling apart, Royal Mail managers are still being the low-life C***S they have always been.
My BFF Clash
The daily grind of having to argue your case with an intellectual pigmy of a line manager is physically and emotionally draining.
-
POSTMAN
- SITE ADMINISTRATOR
- Posts: 32757
- Joined: 07 Aug 2006, 03:19
- Gender: Male
Royal Mail fined 1.5m for missing 2018/19 delivery target
Final decision – 10 July 2020
Following our investigation, Ofcom has today issued Royal Mail with a Decision finding that it contravened DUSP condition 1.9.1 by failing to meet certain performance targets associated with first class mail delivery during 2018/19. It also sets out our decision to impose a financial penalty on Royal Mail for its failure to meet the first class national performance target.
Ofcom has discretion to adjust Royal Mail’s performance to take into account the impact of events which Ofcom considers to be exceptional and which affected its performance. After adjusting Royal Mail’s performance to take into account the impact of Highways England’s road investment programme, Royal Mail still failed to meet the first class national and Postcode Area (PCA) performance targets by a significant margin:
With adjustment, Royal Mail’s maximum first class national performance was 91.9% (falling below the 93.0% target); and
With adjustment, Royal Mail’s maximum PCA performance was 91.5% in 108 of 118 PCAs (falling below the 118 PCA target).
Ofcom takes compliance with performance targets very seriously and has imposed a financial penalty of £1.5 million on Royal Mail for its failure to meet its first class national performance target. A financial penalty has not been imposed in relation to Royal Mail’s failure to comply with the first class PCA performance target.
Following our investigation, Ofcom has today issued Royal Mail with a Decision finding that it contravened DUSP condition 1.9.1 by failing to meet certain performance targets associated with first class mail delivery during 2018/19. It also sets out our decision to impose a financial penalty on Royal Mail for its failure to meet the first class national performance target.
Ofcom has discretion to adjust Royal Mail’s performance to take into account the impact of events which Ofcom considers to be exceptional and which affected its performance. After adjusting Royal Mail’s performance to take into account the impact of Highways England’s road investment programme, Royal Mail still failed to meet the first class national and Postcode Area (PCA) performance targets by a significant margin:
With adjustment, Royal Mail’s maximum first class national performance was 91.9% (falling below the 93.0% target); and
With adjustment, Royal Mail’s maximum PCA performance was 91.5% in 108 of 118 PCAs (falling below the 118 PCA target).
Ofcom takes compliance with performance targets very seriously and has imposed a financial penalty of £1.5 million on Royal Mail for its failure to meet its first class national performance target. A financial penalty has not been imposed in relation to Royal Mail’s failure to comply with the first class PCA performance target.
I Wrote-During Covid-Which is still relevant now
It's good to get these types of threads, the ridiculous my manager said bollox, so we can reassure ourselves that while the world is falling apart, Royal Mail managers are still being the low-life C***S they have always been.
My BFF Clash
The daily grind of having to argue your case with an intellectual pigmy of a line manager is physically and emotionally draining.
It's good to get these types of threads, the ridiculous my manager said bollox, so we can reassure ourselves that while the world is falling apart, Royal Mail managers are still being the low-life C***S they have always been.
My BFF Clash
The daily grind of having to argue your case with an intellectual pigmy of a line manager is physically and emotionally draining.
-
POSTMAN
- SITE ADMINISTRATOR
- Posts: 32757
- Joined: 07 Aug 2006, 03:19
- Gender: Male
Royal Mail fined 1.5m for missing 2018/19 delivery target
Provisional decision – 13 June 2019
Ofcom has determined that there are reasonable grounds for believing Royal Mail contravened its quality of service obligations under DUSP condition 1.9.1 by not meeting specified performance targets associated with First Class mail delivery during 2018/19. Accordingly, we have today issued a notification to the company under paragraph 2 of Schedule 7 to the Postal Services Act 2011.
Royal Mail now has until 15 July 2019 to make representations to Ofcom on the matters contained in the Notification.
Ofcom has determined that there are reasonable grounds for believing Royal Mail contravened its quality of service obligations under DUSP condition 1.9.1 by not meeting specified performance targets associated with First Class mail delivery during 2018/19. Accordingly, we have today issued a notification to the company under paragraph 2 of Schedule 7 to the Postal Services Act 2011.
Royal Mail now has until 15 July 2019 to make representations to Ofcom on the matters contained in the Notification.
I Wrote-During Covid-Which is still relevant now
It's good to get these types of threads, the ridiculous my manager said bollox, so we can reassure ourselves that while the world is falling apart, Royal Mail managers are still being the low-life C***S they have always been.
My BFF Clash
The daily grind of having to argue your case with an intellectual pigmy of a line manager is physically and emotionally draining.
It's good to get these types of threads, the ridiculous my manager said bollox, so we can reassure ourselves that while the world is falling apart, Royal Mail managers are still being the low-life C***S they have always been.
My BFF Clash
The daily grind of having to argue your case with an intellectual pigmy of a line manager is physically and emotionally draining.
-
POSTMAN
- SITE ADMINISTRATOR
- Posts: 32757
- Joined: 07 Aug 2006, 03:19
- Gender: Male
Royal Mail fined 1.5m for missing 2018/19 delivery target
Opening text – 31 May 2019
DUSP condition 1.9.1 requires Royal Mail to meet specified performance targets associated with the quality of service of the provision of universal service products. In particular, the condition sets a national and postcode area standard relating to First Class mail which requires a minimum proportion of First Class mail to be delivered within one working day of collection. These targets are important to ensure that consumers receive a satisfactory level of service.
On 17 May 2019, Royal Mail announced that it had failed to meet its performance targets relating to First Class mail in 2018/19. Royal Mail reported performance of 91.5% against its First Class national standard of 93% and reported meeting its postcode area target in 75 of 118 postcode areas.
Ofcom takes compliance with quality of service targets very seriously. Having considered Royal Mail’s announcement, we have opened an investigation to determine whether there are reasonable grounds for believing that Royal Mail has failed to comply with its obligations under DUSP condition 1.9.1 in respect of the financial year 2018/19.
DUSP condition 1.9.1 requires Royal Mail to meet specified performance targets associated with the quality of service of the provision of universal service products. In particular, the condition sets a national and postcode area standard relating to First Class mail which requires a minimum proportion of First Class mail to be delivered within one working day of collection. These targets are important to ensure that consumers receive a satisfactory level of service.
On 17 May 2019, Royal Mail announced that it had failed to meet its performance targets relating to First Class mail in 2018/19. Royal Mail reported performance of 91.5% against its First Class national standard of 93% and reported meeting its postcode area target in 75 of 118 postcode areas.
Ofcom takes compliance with quality of service targets very seriously. Having considered Royal Mail’s announcement, we have opened an investigation to determine whether there are reasonable grounds for believing that Royal Mail has failed to comply with its obligations under DUSP condition 1.9.1 in respect of the financial year 2018/19.
I Wrote-During Covid-Which is still relevant now
It's good to get these types of threads, the ridiculous my manager said bollox, so we can reassure ourselves that while the world is falling apart, Royal Mail managers are still being the low-life C***S they have always been.
My BFF Clash
The daily grind of having to argue your case with an intellectual pigmy of a line manager is physically and emotionally draining.
It's good to get these types of threads, the ridiculous my manager said bollox, so we can reassure ourselves that while the world is falling apart, Royal Mail managers are still being the low-life C***S they have always been.
My BFF Clash
The daily grind of having to argue your case with an intellectual pigmy of a line manager is physically and emotionally draining.
-
Postie45
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Royal Mail fined 1.5m for missing 2018/19 delivery target
not only has uncompetitve regulation lead to RM declining service, but it has also passed on increasing costs due to less revenue on to customers who buy stamps. Im sure the big businesses and our competitors are getting great deals and the fat cats get richer though, so all is good...
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Trumanity
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Royal Mail fined 1.5m for missing 2018/19 delivery target
Additional £100,000 fine
Ofcom has also fined Royal Mail £100,000 for overcharging customers for second-class stamps between 25 March and 31 March last year.
We set a price cap for second-class stamps to ensure that an affordable postal service is available to everyone, while keeping the universal service financially sustainable.
For 1 April 2018 to 31 March 2019 the cap was set at 60p. Royal Mail increased its price for second-class stamps to 61p on 25 March 2019, thereby overcharging customers for seven days until the cap increased on 1 April 2019.
The company estimated that it overcharged people by approximately £60,000 in total as a result, which it is unable to refund.
Given the harm caused and failure in its processes to stick to the price cap, we have decided to fine Royal Mail £100,000. It has since made changes to its compliance processes that it says will prevent this error from happening again.
Royal Mail has co-operated with our investigations and did not contest our findings. The fines will be passed on to HM Treasury.
Whoever was in charge of the ship on that great decision should be sacked. Oh no! Wasn't it Rico?
Ofcom has also fined Royal Mail £100,000 for overcharging customers for second-class stamps between 25 March and 31 March last year.
We set a price cap for second-class stamps to ensure that an affordable postal service is available to everyone, while keeping the universal service financially sustainable.
For 1 April 2018 to 31 March 2019 the cap was set at 60p. Royal Mail increased its price for second-class stamps to 61p on 25 March 2019, thereby overcharging customers for seven days until the cap increased on 1 April 2019.
The company estimated that it overcharged people by approximately £60,000 in total as a result, which it is unable to refund.
Given the harm caused and failure in its processes to stick to the price cap, we have decided to fine Royal Mail £100,000. It has since made changes to its compliance processes that it says will prevent this error from happening again.
Royal Mail has co-operated with our investigations and did not contest our findings. The fines will be passed on to HM Treasury.
Whoever was in charge of the ship on that great decision should be sacked. Oh no! Wasn't it Rico?
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Postie45
- Posts: 2160
- Joined: 21 Aug 2012, 23:05
- Gender: Male
Royal Mail fined 1.5m for missing 2018/19 delivery target
Mr Back has been put on gardening leave until 15 August, during which he will receive his pay and benefits. He will then receive nine monthly payments totalling £480,000.
We make a few mistakes or get sick too often and we`re out without another penny, pretty sure none of us cost the business anything near someone like that.
hes really earning that money, another shrewd move by RM
We make a few mistakes or get sick too often and we`re out without another penny, pretty sure none of us cost the business anything near someone like that.
hes really earning that money, another shrewd move by RM