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The Minister for the Future of Work (Kate Dearden)
Good afternoon, Ms Lewell; it is a pleasure to serve under your chairmanship. I congratulate the hon. Member for Lagan Valley (Sorcha Eastwood) on securing this debate about the performance of Royal Mail. She clearly outlined the issues in her constituency. She has heard directly from constituents about the inadequate service, and I thank her for bringing that to the Chamber, as I thank other colleagues for doing the same. This is not the first debate on Royal Mail in the House, but it is my first debate as the Minister responsible, and it is a pleasure to respond to it. I take this part of my brief extremely seriously, and I hear the challenges we are working through loud and clear.
Royal Mail should be a cornerstone of our national infrastructure, serving every address in the UK under its universal service obligation. As we have heard, people and businesses continue to rely on its services every single day, and posties are such valued members of the communities they serve. Royal Mail is an independent business, and the Government are not involved in its day-to-day operations or resolving specific service issues, but patience with its performance is wearing thin. Colleagues will have heard that loud and clear from the Prime Minister at the Dispatch Box earlier this afternoon. Customers have every right to expect better.
Royal Mail must do more to restore confidence in its service. That is why I was frank in my meeting with the chief executive of Royal Mail last month, and will continue to be so for as long as necessary. We are clear that the service has been unacceptable for too long and that the pace of improvement must increase quickly. Although letter volumes have fallen from 20 billion items per year in the mid-2000s to 6.5 billion in 2025, the number of addresses served by the universal postal service has continued to grow, and we should reflect on that.
Catherine Fookes
I want to raise the issue of the prioritisation of parcels. As the Minister says, the volume of letters may have gone down, but the overall volume of items to deliver has not. She will be as worried as me that the number of people working in Royal Mail has reduced significantly, and many people are leaving because of low morale. What can she do to make Ofcom do more in this situation—for example, spot checks? Fines are obviously not working.
Kate Dearden
I thank my hon. Friend for raising those important points. I will shortly turn to the work we are doing with Ofcom and the engagement I have had with it so far.
Postal services remain absolutely essential, delivering everything from medical letters to financial information and birthday and greeting cards from loved ones—as well as, soon, Christmas cards. At the same time, the rapid increase from e-commerce over recent years has transformed the postal sector. Parcel volumes for 2025-26 reached 1.44 billion—a 7% increase from ’24-25. I am conscious that, with Christmas coming up soon, Royal Mail will be entering its busiest period of the year, as we have heard from colleagues. It is vital that it delivers a reliable service for its customers.
Royal Mail is an independent business, so responsibility for managing delivery operations, workforce deployment and local performance rests with its management, and it is best placed to investigate localised problems. However, I am all too aware that customers across the country continue to be let down by Royal Mail’s poor service. Many hon. Members receive correspondence from constituents highlighting their concerns and frustrations about Royal Mail’s performance, and colleagues have raised them today, as I have, too.
Steve Darling
I am sure that many Members present will have already raised local issues with Royal Mail and got back what feels very much like a stock letter, as I did. What advice would the Minister give to Members about how to hold it to account for such an appalling service?
Kate Dearden
I thank the Liberal Democrat spokesperson for his intervention. I will very shortly turn in more detail to my engagement with Royal Mail, and the expectations that I have put to it for how it should engage with us in this House with appropriate detail and information.
The consequences of delays can be especially significant when correspondence is important and time-sensitive, such as correspondence regarding hospital appointments, bills, legal documents, benefit correspondence or letters containing driving licences. I share the frustrations and concerns of hon. Members and their constituents. That is exactly why Royal Mail must do more to deliver a reliable service.
Before I reflect on my engagements with the chief executive and my correspondence with hon. Members in this Chamber and outside, I will turn to Ofcom. As the independent regulator for postal services, Ofcom is responsible for setting and enforcing Royal Mail’s service standards. I met Ofcom yesterday to share the feedback I received from hon. Members across the House ahead of this debate—I will also reflect on today’s contributions—and to discuss the wider postal sector. Ofcom has fined Royal Mail £37 million over three years for not meeting quality-of-service targets. Ofcom assured me and the Government that it continues to monitor Royal Mail service data closely and will take further regulatory action, where needed, to hold the company to account.
Ofcom is also investigating Royal Mail’s performance against quality-of-service targets in the last financial year. I know that several hon. Members, some of them in the Chamber, met Ofcom on Wednesday 14 October to raise their frustrations about the continued poor service from Royal Mail. Ofcom has shared the key themes from that discussion with me and my officials. I thank colleagues for taking the time last week. I have no doubt that Ofcom will have heard and understood the strength of feeling about the service that our constituents have experienced.
I will turn briefly to costs, particularly the cost of stamps, which lots of colleagues have mentioned. Last week, Ofcom launched a consultation on extending the current second-class letter price cap until 2028. Of course, every pound counts when people are still struggling with the cost of living crisis, yet they are not getting a reliable postal service. I hope that will be a key consideration, but I recognise that it is for Royal Mail, as an independent business, to set the price of stamps. Ofcom and I discussed that yesterday.
The regulator sponsorship charter, which the Government published in July, reaffirms our role in setting regulators’ strategic direction and holding them to account. We will continue to work closely with Ofcom on its approach to regulation and the outcomes it delivers for customers. We would pragmatically consider any future requests for additional powers where they are needed to support improved outcomes for customers and our constituents. We will actively hold Ofcom and other regulators to account, as appropriate.
Anna Dixon
In addition to meeting Ofcom, as the Minister mentioned, we also met the leadership of the CWU. It is clear that postal workers are coming forward with ideas about how the business could be reformed. I hope the Minister will assure us that she is urging Royal Mail’s leadership to sit down with the CWU to consider some of the more radical, long-term options for reforming our Royal Mail.
Kate Dearden
I will provide an update on our next steps, and our engagement with the unions and Royal Mail, very shortly. All hon. Members present agree that Royal Mail needs to step up and improve its performance. Colleagues reflected on the improvement plan published by Royal Mail to address the primary cause of service issues. It has committed to invest £500 million to increase its frontline resourcing and the availability of working hours for part-time employees. I reflect on the point about suitable sorting offices, using modern technology. We have secured legally binding commitments from the new owners for sufficient investment to ensure that the USO can be delivered.
Jim Shannon
I thank the Minister for her comprehensive response. I appreciate it; each of us in the Chamber does. One massive issue in my constituency of Strangford is staff retention. There comes a certain age, as the years creep up, when the weather goes against you. Some of those who joined early and have done maybe 20 or 30 years come to a stage where they can no longer do it. One of the major reasons why they are not able to do it, apart from the weather factor, is that they are able to get a better wage up the road. To retain staff, wages need to reflect rising inflation and the fact that staff have to travel to work. What discussions has the Minister had with the chief executive to ensure that wages improve, which will naturally help to retain staff?
Kate Dearden
Before I address the hon. Gentleman’s point, and reflecting on his remarks about visiting his local sorting offices and what he is hearing from posties themselves, I put on record that Royal Mail has informed me that it has invested more than £470 million since 2021 in automation and in delivery and infrastructure updates. Of course, when it comes to pay and conditions, we work closely with the trade unions represented in Royal Mail, and we will consider the wider support we can provide to create a sustainable future for Royal Mail. Supporting our posties is absolutely essential.
I also take this opportunity to reflect on my recent meeting with the chief executive of Royal Mail, at which I specifically raised the issue of engagement with colleagues. I urged Royal Mail to be much more proactive with MPs, and much more detailed in its assessments of what is happening at constituency level, and to take seriously every complaint raised directly with it by colleagues, whether the complaint is about performance, service, staffing levels, sickness or absences. It is important that Members across the House have relevant information to hand. When Members, myself included, receive numerous complaints from constituents, it is important that they have the appropriate and relevant information to make that assessment. I reassure Members that I always reiterate that point when I meet Royal Mail.
Charlie Maynard
If possible, I would love to hear the Minister’s thoughts about the points I raised: linking targets to stamp price increases, escalating fines, transparency, and ringfencing Royal Mail’s cash.
Kate Dearden
Hopefully, the hon. Member has reflected on my remarks about my engagement with Ofcom, particularly on its recent consultation on stamps, the cost of living crisis, service and targets. I have heard his remarks and will take them forward in my conversations, particularly around Royal Mail’s service, which has to improve, and improve very quickly, as the Prime Minister reiterated today. I thank the hon. Member for putting his reflections on the record.
On USO reform, Royal Mail is currently implementing a new delivery model, as we all know and have discussed today. That new delivery model was approved by the CWU and its membership, and it is being implemented across the network. Colleagues have reflected on different feedback from their constituents, posties and local management.
Royal Mail’s performance against its quality-of-service targets has been improving, so it is important that any final issues between the company and its workforce in rolling out the new approach are resolved urgently. Today, I reaffirm the commitment given by the Secretary of State yesterday that we are meeting the CWU and Royal Mail the week after next to press for progress. We will update colleagues on that meeting.
I also want to reflect on what colleagues have said about our important, absolutely essential postal workers, who are a central part of every city, town and village we represent. Indeed, they are integral to their communities’ future success. Posties work tirelessly every single day for constituents and customers, and Royal Mail must ensure that they remain at the heart of a business that delivers in line with all our expectations.
I put on record my appreciation for our postal workers and posties across the country. My grandad was a very proud postie. He loved his community and he loved his job, because it is about much more than delivering letters and parcels. Posties are part of the communities they serve. They know their rounds and their customers. Often, they are one of the familiar faces that people see every day; sometimes, they are the only familiar face that people see. I therefore take the time to express my appreciation.
It is in everyone’s interest to get round the table to resolve the issues we have discussed today, including the need for an improvement in the quality of service—we must make sure that happens quickly. Indeed, that is my commitment to all colleagues in Westminster Hall today.
Before I conclude, I will talk about parcels and the need to address the imbalances in the postal sector, which is an important part of the next steps, and update colleagues on the work we are doing in the Department in this space. We are improving the working conditions, standards and rights of workers across the economy, including in the delivery sector, which is really important to me.
Last week, we published a consultation on proposals for targeted reforms of the employment status framework for employment rights. We recognise that self-employment arrangements can provide flexibility for some people, but we are also aware of the concern that the current employment status framework can leave vulnerable workers without core and basic employment protections and rights. Our consultation hopes to address those issues, particularly around bogus self-employment, which colleagues have reflected on today, taking into account the impact on key sectors of the economy, including the postal services industry.
Yesterday, colleagues and I attended an interesting roundtable on work and employment in UK parcel delivery, held with the University of Sheffield Management School, where we talked about exactly these issues. Its research is important and will feed directly into our work in this space. Across the sector, Ofcom has reacted to growing concern about delivery performance by reminding operators of their obligations, and it has engaged with all major parcel companies to ensure their compliance with the regulatory framework.
Although this debate focuses on the performance of Royal Mail, it is important to recognise that reliable delivery matters across the postal and parcel delivery market. That is particularly the case for our vulnerable constituents, as service failures can have a disproportionate impact on vulnerable consumers, including disabled people who might often struggle to leave their homes. Ofcom has introduced targeted protections that require operators to have appropriate policies in place for the fair treatment of disabled customers, alongside strengthened guidance on complaints handling. Lots of colleagues mentioned that today, and I will continue to press Ofcom and Royal Mail where I need to.
The way we communicate might be changing, but post remains an essential service for people and businesses across the United Kingdom. The Government believe that the performance of Royal Mail has been unacceptable: I have made that clear, as has the Prime Minister. The Secretary of State also made it clear in his response, published yesterday, to the Business, Innovation, Science and Trade Committee’s report. We will continue to press Royal Mail and its management to improve the quality of its service. Customers rightly expect and deserve a reliable postal service, and colleagues from all parties expect their constituents to have it, too. Royal Mail absolutely must deliver it, and deliver it soon.
Again, I pay tribute to and thank our incredible posties across the country who work tirelessly to deliver for our constituents and support their communities. Royal Mail is a national institution that is a key part of our identity, and we all want it to succeed. We are passionate about the universal postal service on which we all rely. I hope colleagues hear my passion about ensuring that we get people round the table so that we can deliver a better service for our constituents, through the wider postal sector and Royal Mail. I thank colleagues for their reflections and contributions, and I thank the hon. Member for Lagan Valley for securing this debate.