Royal Mail

Debate between Lord Sikka and Lord Stockwood

Monday 8th June 2026 Lords Chamber

[Lord Sikka]

To ask His Majesty’s Government in which years since its privatisation Royal Mail has fully met its first class and second class letter delivery targets; and what assessment they have made of its performance in this period.

[The Minister of State, Department for Business and Trade and HM Treasury (Lord Stockwood) (Lab)]

My Lords, Ofcom sets and monitors the Royal Mail’s quality of service targets and publishes annual performance data. Following its privatisation in 2013, Royal Mail fully met its first-class and second-class delivery targets in 2013-14, 2014-15, 2016-17 and 2019-20. Royal Mail met its second-class target, but not its first-class target, in 2015-16, 2017-18 and 2018-19. Royal Mail failed to meet both targets in all years from 2021-22 to 2025-26. The Government’s assessment is that performance has been unacceptable and must improve, and we will continue to engage with Ofcom and Royal Mail accordingly.

[Lord Sikka (Lab)]

My Lords, Royal Mail is another disastrous privatisation. Since privatisation, the price of a first-class letter has increased by 200% and second-class by 89%. As the Minister just said, Royal Mail has not met its delivery targets for years, and Ofcom continues to lower the targets; second-class mail is now to be delivered only every other day and not at all on Saturdays. Ofcom has clearly failed. It seems that the Government have two options: either to restructure Ofcom or to bring Royal Mail into common ownership. Which option will the Government exercise?

[Lord Stockwood (Lab)]

In preparation for this Question, I spoke to both the CEO of Royal Mail and directors of Ofcom. For context, it is worth stating that letter volumes have halved in the last 10 years, while the number of addresses has increased significantly. While I agree with my noble friend that performance has not been where it needs to be, there is a quality of service plan that has been negotiated between Ofcom and Royal Mail, and indeed, this year, Royal Mail is above the targets that it set for itself to meet those aggressive performance targets by March of next year. Some £500 million of additional investment has been committed, and there was an agreement with the CWU to ensure that the employment practices are sustainable for the commitments to improvements and services. So, while I agree with my noble friend that the current performance is not where it could be, the CEO of Royal Mail made commitments early last week that he is confident that it will meet the targets by April of next year.

US Tariffs

Debate between Lord Sikka and Lord Stockwood

Monday 23rd February 2026 Lords Chamber

[Lord Stockwood (Lab)]

I am not aware that that is part of the negotiations.

[Lord Sikka (Lab)]

My Lords, is there a role for the World Trade Organization in this tariff-led turmoil?

[Lord Stockwood (Lab)]

At the moment, these are bilateral conversations. We are acting in good faith and hope that they will come to a successful resolution.