ROYAL MAIL’S £10.5 million fine for missing its postal delivery targets in 2023/24 is the “direct result of the deliberate and sustained dismantling of postal services,” the Communication Workers Union (CWU) said today.

Regulator Ofcom made the fine — which comes after it issued a £5.6 million penalty in November 2023 — after just under three-quarters of first class post was delivered on time during the period, well short of its 93 per cent target.

Ofcom director of enforcement Ian Strawhorne said: “Royal Mail’s poor service is now eroding public trust in one of the UK’s oldest institutions.

“Royal Mail has provided an improvement plan, and we’re seeing some signs of progress, but it must go further and faster to deliver the service that people expect.”

A CWU spokesperson blamed the company’s “failed” board and senior management team for the fines.

Partly blaming poor performance on the impact of industrial action “shows the lack of credibility and integrity of a board who have overseen the most shameful period in Royal Mail’s history,” the union said.

A company spokesperson said high quality service is “extremely important,” and Royal Mail is making changes to deliver it.

But they added that its one-price-goes-anywhere universal service obligation (USO) needs “urgent reform,” claiming it does not meet modern customer needs.

The universal service currently requires Royal Mail to deliver letters six days a week and parcels five days a week, but is under review.

CWU warned that “there will be no agreement to these [USO] changes” unless “we see quality restored and the terms and conditions of our members improved.

“We cannot and will not let the same people who destroyed the service claim to be its saviours.”

The fine comes as Czech billionaire Daniel Kretinsky closes in on a deal to buy Royal Mail from current owner International Distribution Services.

Mr Kretinsky’s EP Group agreed to buy IDS earlier this year, but is believed to have agreed to several concessions to gain approval.

Chancellor Rachel Reeves said: “I recognise it’s incredibly frustrating for people when they receive mail late and it’s right that Royal Mail have been fined for failing to deliver.

“The Business Secretary Jonathan Reynolds has been really clear with Royal Mail about the importance of delivering the service that people rightly expect.”