Royal Mail: Performance

Blair McDougall Excerpts

Wednesday 18th March 2026 Westminster Hall

[The Parliamentary Under-Secretary of State for Business and Trade (Blair McDougall)]

It is a pleasure to serve under your chairmanship, Mr Twigg. I thank the hon. Member for Exmouth and Exeter East (David Reed) for securing today’s important debate. He spoke about falling confidence in Royal Mail. I think the debate has shown that there is growing anger about failures of service. My hon. Friends the Members for Worcester (Tom Collins), for Hartlepool (Mr Brash) and for Sheffield Central (Abtisam Mohamed) and others spoke about how, when raising those concerns on behalf of constituents, they heard a completely different version of events in response. That has added to the sense of the frustration, particularly when hon. Members are so connected to their local posties, who understand what is happening on the ground.

I join others in paying tribute to our hard-working posties across the country. The hon. Members for Yeovil (Adam Dance) and for Keighley and Ilkley (Robbie Moore), my hon. Friend the Member for Leeds East (Richard Burgon) and others rightly said that any criticism of Royal Mail service is not a criticism of the posties themselves.

The Government remain absolutely committed to the universal postal service, which is an essential part of our economic infrastructure. It can and should be delivered. Hon. Members have raised concerns about the impact of service failures on the work of democracy. They have talked about bank cards not arriving and the isolation that causes. The hon. Member for Bromley and Biggin Hill (Peter Fortune) spoke about the human impact of missed hospital appointments, and there are also consequences for legal hearings and business deals.

I confirm to my hon. Friend the Member for Bury St Edmunds and Stowmarket (Peter Prinsley) that I am also not getting love letters through the post—

[Peter Prinsley]

Give it time.

[Blair McDougall]

Seriously, though, it is galling that Royal Mail is increasing the price of its services but is not meeting delivery targets. Our constituents rightly expect that, if they are paying more, they should get the service and deliveries on time. It is simply not good enough.

[Jim Shannon]

The Minister is always very responsive; I appreciate his responses today and in the past. I spoke about a person who applied for PIP and found that there was a delay in the post. That young boy, a type 1 diabetic, was denied one month of his benefit as a result. Will the Minister please look at that?

[Blair McDougall]

I will happily look at that. It is another example of a service that is simply not good enough.

As was mentioned, I recently met Royal Mail’s chief executive to press these issues directly. He was left in no doubt about the level of anger and concern across the House, and he was clear that the service is not where he wants it to be. He gave me a firm commitment that he will work towards restoring confidence in the service.

Where service has fallen short locally, whether due to staffing pressures, which the hon. Member for Upper Bann (Carla Lockhart) mentioned, operational challenges or external disruption, customers need to see sustained and structural improvement, not just short-term fixes. I understand that the hon. Member for Exmouth and Exeter East has met Royal Mail to discuss these issues. I have been advised that there are currently three vacancies in the Exmouth office, and I expect that Royal Mail will fill them to ensure there is an improvement in service locally.

Across the country, our constituents deserve visible improvements in reliability, and that expectation underpins every discussion that I and other Ministers have with Royal Mail. That is why, before the takeover of Royal Mail, we secured significant commitments from the new owners of the business, including a commitment to prevent dividend payments until quality of service improves.

As many hon. Members said, service improvement is also intimately linked to workers’ terms and conditions and the reform of Royal Mail’s operation. It is critical that the Royal Mail workers are on board with the operational changes, and that their experience informs that work. The Government continue to engage with EP Group on that; that is why my right hon. Friend the Secretary of State convened a joint meeting with the owners of EP Group and the CWU last month to help to unblock the outstanding issues. That engagement continues.

Hon. Members also referred to my detailed discussion with Ofcom last week about its expectations of Royal Mail and the steps it is taking to protect consumers. I highlighted hon. Members’ significant concerns about the delivery performance and the negative real-world impact that that is having on our constituents. It is fair to say that Ofcom has heard the strength of concerns, particularly those expressed in the Chamber last week. One outcome of that meeting is that Ofcom is clear, as it has been for some time, that Royal Mail is required to publish a detailed improvement plan that results in significant and continuous progress, and that it expects that one should appear within days of an agreement with the union. Where failures continue, Ofcom will not hesitate to act again, and last year’s £21 million fine was a clear signal.

We are in a context where, as has been said, the performance of many other parcel providers makes Royal Mail’s performance look positively glowing, and Ofcom is also looking at that wider context. None of us is blind to the wider context and the structural pressures. Letter volumes have halved over the past decade. As hon. Members have said, to ensure that the USO is sustainable, Ofcom has made changes to Royal Mail’s obligations.

However, as my hon. Friend the Member for Middlesbrough and Thornaby East (Andy McDonald) made clear, those changes and reforms cannot be imposed from the top down. Royal Mail must work constructively with its workforce and unions to ensure that operational changes translate into better services for customers across the country—a point also made by my right hon. Friend the Member for Oxford East (Anneliese Dodds), and my hon. Friends the Members for Stafford (Leigh Ingham) and for Glenrothes and Mid Fife (Richard Baker).

There is wisdom in every sorting office; staff there understand how the business works. We have taken a close interest in the negotiations, the new operating model and workers’ conditions. I mentioned that the Secretary of State recently met with EP Group and the CWU; a further meeting is scheduled for tomorrow. I am hopeful that Royal Mail’s owners and the union will work together in the interests of Royal Mail’s employees, its customers and the business.

Several hon. Members raised concerns about the impact on postal votes. We have sought strong reassurances from Royal Mail on that issue. There have been meetings with the chief executive of the Electoral Commission to discuss plans for the upcoming elections, and a similar meeting is taking place in Scotland with Ministers there. My hon. Friend the Minister for Building Safety, Fire and Democracy is having a further meeting with Royal Mail to discuss postal votes, and we are leaving Royal Mail in no doubt about our expectations in that space.

[Luke Taylor]

It is encouraging to hear that the Government have sought reassurances, but nothing short of a fundamental revolution in my local delivery office will see postal votes delivered even within the weekend on which they are expected to arrive. Can the Minister detail what those reassurances involve? Do they require additional resource to be provided to the delivery offices so that they can pay for the inevitable overtime or additional staff on those dates? Similarly, when the postal votes need to get back to our town halls, what will be done to make sure that that end of the process also happens over a period of three or four weeks?

[Blair McDougall]

Obviously, part of ensuring that the obligations around postal votes are maintained is making sure that the resource is there on the ground to do that. Another part of it is also the prioritisation of postal votes within the service. There are existing structures for that, such as doing sweeps of boxes. I reiterate that the Government will continue to hold Royal Mail to account, will support strong and independent regulation by Ofcom and will press urgently for the improvements that customers rightly expect to see.

[Andy McDonald]

Just before the Minister sits down, can he help me with a couple of things? The reduction in terms and conditions for new entrants into our sorting offices is causing great problems. People are leaving within days and weeks, so there is an issue there. Similarly, in this competitive landscape, we have other providers working on the basis of bogus self-employment. Given that we approach this issue on a whole-of-Government basis, rather than just in silos, I wonder whether we are looking closely at the damage that this situation is causing. I think particularly of the £10 billion that goes uncollected through bogus self-employment, which could enhance the coffers of the Treasury, among other things, and provide people with secure and solid work. As it stands, we have insecure and fragile work, both in Royal Mail and in the private sector that competes with it. Surely this is the worst of all worlds. A thorough approach is needed. I am yet to hear the Minister tackle the key issue raised by many hon. Members from the Government Benches: that we should be looking at the option of public ownership. Will the Minister please address that?

[Blair McDougall]

Our focus at the moment is on getting the business on to a sustainable footing. That is about the negotiations on the very terms and conditions that my hon. Friend raises. As I mentioned, Ofcom has put on notice those other parcel providers. That is primarily about the poor quality of service that we see from many of them, but when we talk to Royal Mail and the union—as I am sure my hon. Friend has done—they will point out that sense of better employers being undermined by those working practices. He has been a constant campaigner in that respect.

I thank all hon. Members for their contributions to today’s debate. I reassure them that the specific localised issues that they have raised will be covered in ongoing engagement with Royal Mail and Ofcom, along with the bigger structural conversation with the union and owners. I close by again paying tribute to the posties who do an extraordinary job across the country, and stress again that none of the criticisms today are laid at their door.