Royal Mail handed boost as Labour welcomes pay rise despite another year of missed delivery targets

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GB NEWS

Temie Laleye

By Temie Laleye


Published: 30/05/2026

- 12:07

The postal company attributed its poor results to challenging winter conditions,

Royal Mail workers have backed a new pay and workplace agreement in a move the Labour Government hopes will help improve the struggling postal service.

The deal comes as Royal Mail continues to face criticism after missing key delivery targets.


Members of the Communication Workers Union voted to accept a 4.5 per cent pay rise and a separate agreement covering working arrangements.

The working arrangements deal was backed by 65 per cent of members on a turnout of 32.9 per cent, while 72 per cent supported the pay offer on a turnout of 32.3 per cent.

Business Secretary Peter Kyle welcomed the result, saying: "We all recognise that postal services have let down loyal customers for too long, damaging confidence and the ability of businesses to plan for growth."

He added: "This agreement means a new chapter for Royal Mail."

Mr Kyle said rebuilding trust in the postal service requires change, adding that he had brought together Royal Mail's owners and union leaders to help secure a deal that would put the future of the service on a stronger footing.

The agreement comes against a backdrop of continued performance issues. Royal Mail's latest quality of service figures showed that just 75.7 per cent of first-class letters were delivered the next working day in the year to March, down from 76.3 per cent in the previous reporting period.

This remains far short of Ofcom's requirement that 90 per cent of first-class post should arrive next day.

Second-class delivery also deteriorated, with 90.2 per cent arriving within three working days compared to 92.2 per cent the year before, missing the regulator's 95 per cent benchmark.

Royal MailRoyal Mail misses first class delivery targets in every UK postcode area | GETTY

The postal service has now failed to meet Ofcom's targets for consecutive years.

An Ofcom spokeswoman said: "We are very concerned to see the latest delivery figures from Royal Mail today and will announce next steps shortly."

The regulator is understood to be preparing to launch a full investigation into the company's performance early next week.

This follows Ofcom imposing a £21million penalty on Royal Mail in October last year after the company missed its annual targets, marking the third-largest fine the communications watchdog has ever issued.

A Royal Mail postman delivers mailBritons may see a change to Royal Mail delivery services in the near future | GETTY

At the time, Ofcom described it as "unacceptable" that millions of important letters were reaching recipients late.

Royal Mail attributed its recent struggles to a difficult start to the year, pointing to storms Goretti and Chandra as well as increased staff sickness from flu during the winter months.

Despite the weakening annual figures, Royal Mail has highlighted recent improvements, claiming to have consistently delivered more than 80 per cent of first-class post on time throughout April and May.

The company has committed to investing £500million over the next five years to enhance its service, with plans to meet Ofcom's 90 per cent first-class target by May next year.

Royal Mail delivery lorries and minivans parked in the car park of the Mount Pleasant Post Office

The reforms include phasing in a new delivery model that will eliminate Saturday second-class post

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GETTY

Royal Mail's chief operating officer Jamie Stephenson said: "We'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."

The reforms include phasing in a new delivery model that will eliminate Saturday second-class post and reduce second-class deliveries to alternate weekdays, subject to union consultation.