Royal Mail: Performance

Alex Easton Excerpts

Wednesday 18th March 2026 Westminster Hall

[David Reed]

I have been looking at the numbers over the last few years, and Royal Mail has gone from significant losses of about £400 million three years ago, to £200 million losses, to making a £14 million profit last year. Because it is a privately owned company—we will come on to that—it has cut a lot of fat away, but it has also cut away muscle. Prices have increased, but the service has gone down. That is completely unacceptable, and it is probably the reason why we are all here today.

[Alex Easton (North Down) (Ind)]

I thank the hon. Member for securing this debate. A recent Gallup meta-analysis of about 1.8 million employers found that a meaningful increase in employees’ wellbeing leads on average to a 10% increase in productivity. In the light of that evidence, does he agree that it would be beneficial for the chief executive of Royal Mail to meet urgently with the Communication Workers Union to ensure that existing agreements are honoured and that the wellbeing of the workforce is genuinely prioritised?

[David Reed]

That is a serious point. We can talk about the Royal Mail service for our constituents, but the posties themselves are experiencing significant trouble at the moment. I am sure we have all heard about it in our inboxes recently. I will come to the issue later in my speech, and I am sure other Members will raise it, but I do agree with the hon. Member.

Royal Mail has failed to meet both those delivery targets for three consecutive years, and I have very little confidence in when a letter would arrive if I sent one today. If anyone could give me an insight into that, I would be very happy to hear it. Furthermore, Royal Mail offers economy access mail, a non-priority service for bulk non-time-critical letters that provides savings compared with first and second-class services. It typically delivers within four working days, often arriving alongside other post, but it can take up to five days or more. The fact that companies or organisations such as banks and the NHS use that product helps to explain the correspondence in our inboxes and the conversations we have in our constituencies, in which people ask why their post seems to disappear for weeks only to arrive all at once. That crucial point has not been communicated to the public in any meaningful way.

Set against the backdrop that competitors can offer reliable same-day or next-day parcel delivery, it is easy to understand why public confidence in Royal Mail has declined. At the same time, as the hon. Member for North Down (Alex Easton) alluded to, our local posties are under significant pressure, working in an increasingly demanding environment in what I am sure can feel to them like a thankless job. Members will, like me, have received emails from local postal workers asking for support and for their concerns to be heard. It is right that we give them a voice in this conversation.

I have no doubt that Members will set out a wide range of issues that they and their constituents have experienced. I want to leave ample time for those contributions, but I do want to share one example of poor delivery service that I have experienced with Royal Mail. It reflects what many of my constituents have been dealing with for some time; it is clear that the problems are not isolated, but getting a straight answer about them is far harder than it should be. In my case, public money was involved: every Member knows that they can produce a non-partisan, publicly funded annual report to communicate with constituents, yet in parts of my constituency that report simply was not delivered. I pressed Royal Mail on what went wrong and did not receive a proper answer. I am still waiting to receive one. When public money is used, there should be clear accountability, but that has not happened here.

The same applies to those paying out of their own pockets. Our constituents are paying increasing amounts for stamps and not getting the service they have paid for. Again, there is little accountability. I am sure we will hear similar experiences from colleagues today. If Royal Mail cannot provide an answer to a Member of Parliament about delivery failures—I gave it ample opportunity to do so, on many occasions—it raises serious questions about what an ordinary member of the public can expect to experience when they ask the same questions.

This is the United Kingdom, not Russia or North Korea. When people pay for a service, they rightly expect it to be delivered well. When it is not, they expect, at the very least, a clear explanation and reassurance that the problem will not happen again.