Surge in Complaints Registered Against Royal Mail

Royal Mail faced a surge in customer complaints, leading to a compensation payout of £26 million last year. The compensation, triggered by issues such as loss, damage, or delays in letters and parcels, witnessed a notable increase of 46% compared to the previous year.

 

Ofcom's data revealed a 37% rise in the total number of complaints resulting in compensation, reaching almost 1 million cases. The average compensation amount also saw a rise of £1.76, reaching £26.93.

 

These figures underscore the mounting challenges Royal Mail is grappling with in terms of service quality, exacerbating the company's financial struggles. Last month, the postal service received a record £5.6 million fine from the regulator for failing to deliver more than a quarter of first-class post on time. Recent quality-of-service reports indicate that Royal Mail continues to fall significantly below its targets, attributing the decline to high levels of vacancies and staff absences.

 

Ofcom expressed concern about the lack of improvement in Royal Mail's performance, highlighting disappointment in the company's inability to provide a timeline for performance enhancement. Martin Seidenberg, the CEO of Royal Mail's owner, International Distributions Service, pledged to "pull out all the stops" to prevent disruptions during the upcoming Christmas season. Royal Mail announced a bonus of up to £500 for postmen meeting delivery targets and plans to hire 16,000 seasonal workers while opening five temporary sorting centers.

 

The decline in delivery performance coincides with Royal Mail's efforts to counter deepening losses, attributed to prolonged strikes and a decrease in letter sending. The company reported a £319 million loss in the first half of the year, a £100 million deterioration from the same period in 2022. Structural challenges, including a decline in letter sending and increased competition from couriers, contribute to Royal Mail's ongoing struggles.

 

A Royal Mail spokesperson acknowledged the seriousness of every complaint, noting that the compensation figures partly reflect the trend of rising parcel volumes and decreasing letter volumes. 

 

The Johnson Partnership 

(formerly GV Hale)