Royal Mail: Performance

Debate between Anna Dixon and Kate Dearden

Wednesday 21st October 2026 Westminster Hall

[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.