Royal Mail: Performance Debate
Full Debate: Read Full DebateCharlie Maynard
Main Page: Charlie Maynard (Liberal Democrat - Witney)Department Debates - View all Charlie Maynard's debates with the Department for Business and Trade
(1 day, 12 hours ago)
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Charlie Maynard (Witney) (LD)
It is a pleasure to serve under your chairship, Mr Twigg, and I thank the hon. Member for Exmouth and Exeter East (David Reed) for securing this important debate.
I also thank my hon. Friends the Members for Sutton and Cheam (Luke Taylor), for Eastbourne (Josh Babarinde) and for Yeovil (Adam Dance) for highlighting all the impacts on their constituents, in the form of missed medical appointments, financial appointments or legal appointments. Exactly the same is true in my Witney constituency. Obviously, I speak for the whole Chamber; we are all getting correspondence about this issue in our mailbox, because it is causing so much trouble. The other thing that has come out so strongly in this debate is the stress, the distrust and the unfairness that the posties themselves have to live with. That situation causes a huge amount of unhappiness, but there seems to be no end to it in sight, which is a real problem.
The turnover rate of new Royal Mail employees is extremely high and the work practices are harsh. Yet we rely on our local posties, and almost without exception they take their responsibilities extremely seriously. I will give a particular shout out to my postie, Tony, who on Christmas eve worked way beyond his scheduled hours. He should not have had to do that and should have been paid for it. However, he is representative of everybody working for Royal Mail around the country, and that situation does not just happen on Christmas eve; it happens week in, week out.
The work practices are just getting tougher and tougher. That comes out in the latest quarterly report, which makes for miserable reading. For example, delivery targets were not met in a single postcode across the first three quarters of 2025-26. In Oxfordshire, just 67.2% of first-class mail arrived, against the target of 93%.
In October 2025, Ofcom fined Royal Mail £21 million, saying that it urgently needed an improvement plan. However, five months later Royal Mail is still saying that it cannot publish that plan until talks with the postal workers union—the CWU—conclude. All the while, our constituents and our posties are left paying more and suffering more for an inadequate and wholly unreliable service.
Charlie Maynard
I have been here for 17 months. We could rehash things from 14 or 17 years ago. I believe that in 2009 the Labour Government sought to take a 30% stake out of the Royal Mail, but I am not interested in going back through that because we are where we are. Let me try to finish my speech, and I will talk about where I think we should be heading now.
The Government and Ofcom need to urgently make it clear to Royal Mail executives that they must get a grip on the situation. Although letter numbers have fallen, there is still plenty of demand for Royal Mail’s delivery services. Crucially, everyone across the country and all of us here in Parliament place huge value on retaining the universal service obligation. What seems clear is that the incentives are wrong.
The new owner of Royal Mail is a commercial operator that bought International Distribution Services, the holding company of Royal Mail, in June 2025 with a full understanding of the Royal Mail’s USO requirement. The business seems to be prioritising its profitable parcel business, General Logistics Systems. The owner also has a clear commercial incentive to cut costs on the Royal Mail side of the business and to keep lobbying Ofcom to continue to loosen the USO requirements even further. Such a strategy serves the owner of Royal Mail very nicely, but is a terrible outcome for the many millions of people up and down the country who depend on the USO, and for the posties.
I am sure the Minister and Ofcom recognise that predicament and also recognise that the USO is a key public good. I am interested in the extent to which the Minister considers the situation similar to or different from the telecoms industry levy, which is used to fund the broadband universal service obligation. Does the Minister agree that insisting on much clearer operational transparency from the Royal Mail would be good to establish more detail on whether parcels are being prioritised over letters and the impact of that? It could be managed by Ofcom requiring root-level data on delivery performance and clear reporting on parcels versus letters prioritisation to make it harder for USO traffic to be quietly deprioritised. What steps is the Minister considering taking to stop a situation where Royal Mail keeps trying to bounce Ofcom into cutting the USO further?