Royal Mail: Performance

Gregory Campbell Excerpts

Wednesday 18th March 2026 Westminster Hall

[David Reed (Exmouth and Exeter East) (Con)]

I beg to move,

That this House has considered the performance of Royal Mail.

It is a pleasure to serve under your chairship, Mr Twigg. I want to ask everyone to go along with me for a few seconds by closing their eyes and visualising what the Royal Mail means to them. I picture the intrepid and hardy postie battling through snow, hills, rain and fog to ensure that our post is delivered. I picture the regular encounters with my postie wherever I have lived, and the kind, warm and friendly conversations we have had on the doorstep. Members will be happy to know that I am not going to go round the room asking what they visualised, but I imagine it was fairly similar to what I just described.

If there was one word to sum it all up, it would be “trust”—trust in the Royal Mail service and in an institution that has been a constant in British life for over 500 years. But we all know that that trust is waning. We feel it ourselves, and we hear it from our constituents, families and friends. The institution that so many of us have known, valued and trusted is changing, and something must be done by us in this House to stop the decline.

Before I turn to some of the issues and recommendations, I want to address the elephant in the room: Royal Mail is facing significant external pressures—we all know that. Modern technology such as email and online messaging has gradually sidelined traditional letter mail. Royal Mail itself often says that it used to be a letters organisation that delivered parcels, and now it is a parcels organisation that still delivers letters. This challenge is not unique to the United Kingdom. Our friends in Denmark, for example, saw their state postal operator, PostNord, deliver its final traditional letter in December 2025, ending more than 400 years of national letter delivery. From 2026 onwards, PostNord will focus solely on parcel delivery, after letter volumes fell by around 90% since 2000. We have faced a similar trend here in the UK.

For all of us here, that raises a broader question for our country: in this increasingly digital world, do we still value physical letters? My answer—I imagine it is the same as that of everyone else here today—is a resounding yes. There is something secure about a letter passing through trusted hands on its journey to its destination. As we all know, digital systems can fail or be hacked or manipulated. At a time of growing international uncertainty and environmental disruption, it is imperative that we maintain a strong and resilient network of physical mail delivery. In this new era, with Royal Mail now operating as a privately owned company with overseas ownership, we must work with the company to ensure that the universal service obligation is fit for purpose and, crucially—this is the key point—understood by the British public.

I am sure this will come up in many Members’ speeches, but the failure to meet delivery targets is a significant problem. Under the current USO, Royal Mail is required to deliver 93% of first-class letters the next working day and 98.5% of second-class letters within three working days.

[Mr Gregory Campbell (East Londonderry) (DUP)]

I congratulate the hon. Member on securing the debate. The timelines he is outlining have not been met, but that has coincided with a remarkable increase in the cost, particularly of first-class stamps, in the past five years. Does he agree that that is what drives the downward trend in the community’s trust in Royal Mail to deliver, and it needs to modernise and be more efficient?

[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.