Royal Mail workers have voted to accept a new deal on pay and working arrangements, a move welcomed by the government.

The Communication Workers Union (CWU) announced members backed the working arrangements agreement by 65 per cent on a 32.9 per cent turnout.

A 4.5 per cent pay offer was also accepted by 72 per cent of members, with a 32.3 per cent turnout, the union confirmed.

Business Secretary Peter Kyle said: “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.

“Rebuilding trust in Royal Mail means change, which is why I brought together the company’s owners and union leaders to help them thrash out a deal that puts the future of this vital national service on a stronger footing.

“This agreement means a new chapter for Royal Mail.

“No one questions the hard work of Britain’s posties.

“Now we all need to see a big improvement in the performance of the Royal Mail operation.”

Royal Mail workers have agreed a 4.5 per cent pay offer
Royal Mail workers have agreed a 4.5 per cent pay offer (PA Media)

Delivery targets missed

On Friday, it was announced that Royal Mail had missed its delivery targets for another year.

However, it said more first-class mail has been sent on time over recent weeks after pledging to invest £500 million in improving its service.

Some 75.7 per cent 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 per cent achieved the prior year.

For second-class mail, 90.2 per cent was delivered within three working days – less than the 92.2 per cent achieved the year before.

Under Ofcom’s targets, 90 per cent of first-class mail should be delivered the next day, and 95 per cent of second-class mail should be delivered within three days.

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

It is understood that the regulator expects to open a full investigation into Royal Mail’s performance early next week.

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 £21 million by Ofcom in October 2025 for missing its annual targets – the third-largest fine ever imposed by the communications watchdog.

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