Royal Mail: Universal Service Obligation

Lindsay Hoyle Excerpts

Wednesday 11th March 2026 Commons Chamber

[Dame Harriett Baldwin (West Worcestershire) (Con)]

Thank you, Mr Speaker, for granting this urgent question. I congratulate the hon. Member for Blyth and Ashington (Ian Lavery) on securing it. We can see from the number of Members who are interested in this topic just how serious it is across all our constituencies. I can testify to the fact that I have had an enormous amount of casework on this issue, which started just before Christmas, involving hospital appointments being missed, and children’s birthday cards, condolence cards for recently widowed individuals and postal voting forms not arriving. This is an absolutely critical issue.

I reiterate that the universal service obligation is an obligation. It is an obligation set out in statute, and it is an obligation to every household in this country. We can all testify to the fact that it has been systematically broken, and that the turning point was when the new owner bought Royal Mail, with this Government’s approval, in April 2025.

The letter from Royal Mail received by the Business and Trade Committee yesterday revealed that over 200 million letters have been delivered late this year. In addition to the meetings the Minister has listed with Ofcom, what assessments has he made of all the stress being caused to our constituents and the impact on people’s wellbeing? Has he had a critical discussion with Ofcom, because it appears that it is not really doing its job as a regulator? The public are paying more but getting less, and the fines he has listed do not reflect the deterioration we have seen recently. In my discussions with Royal Mail, it has said that parcels overwhelm the service at Christmas, but that situation is carrying on into March. Is it not the reality that parcels are much more—

[Mr Speaker]

Order. The hon. Lady is over time. I was trying to push her along to finish her question, but there seem to be more pages. Can we now end?

[Dame Harriett Baldwin]

We can certainly now end by asking for the Minister’s plan in terms of—

[Mr Speaker]

Order. We have had enough—I don’t need that backchat. I call the Minister.

[Blair McDougall]

I hope that the hon. Member can tell from my body language and tone that I share the anger and frustration of Members across the House. As I mentioned, I am meeting Ofcom later today to raise the very issues she mentions. I slightly take issue with the year zero approach she took. There are very long-standing issues with Royal Mail driven—in fairness—by the changes in consumer habits and the things we are sending and not sending any more. She mentions the new ownership. As part of that deed of undertaking, this Government got the assurance from the new owners that they could not take value out of the company until service improved. That shows that we take this matter seriously.

[Blair McDougall]

My hon. Friend gives me the opportunity to do what I have not done so far, which is to say that whatever criticisms hon. Members across the House have, they are in no way a critique of the work of our heroic posties up and down the country. I mentioned earlier that the Secretary of State brought together management and unions; Royal Mail is a private company, and we are not seeking to insert ourselves and become mediators, but that was a signal of how seriously we take this matter and how seriously we take the need for management and the unions to come together and address, through mutual understanding, exactly the issues he raises.

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Sarah Olney (Richmond Park) (LD)]

In each year since 2023, Royal Mail has been fined by Ofcom over delivery delays, amounting to nearly £40 million. Following recent announcements, it would not surprise me if it were fined again in 2026. When Royal Mail was reprimanded in 2023 and 2024, its leadership promised that reforms would be made to improve its services, but following the £21 million fine in October 2025, the company said it could not publish its improvement plan until negotiations with the Communication Workers Union concluded.

The takeover of Royal Mail, which this Government supported, seems to have done nothing to improve the service so far. Over the past several years, an average of roughly one in four first-class letters arrives late, and recent reports suggest that 219 million letters may arrive late this year. These letters are sometimes urgent and hold important information, so it is clear that Royal Mail is repeatedly failing to meet its universal service obligation. Despite that, its stamp prices have consistently risen. That includes next month’s planned rise of 10p to the cost of first-class postage, taking the cost of a stamp to £1.80. The sorry saga of Royal Mail has gone on for far too long. Does the Minister believe that the British public should be paying more for their postal service, despite Royal Mail repeatedly failing to deliver their letters on time?

--- Later in debate ---

[Lola McEvoy (Darlington) (Lab)]

I would like to put on the record that, despite testimony to the contrary, it is Darlington’s postal workers who are the best in the country. They deliver their service to the best of their abilities, and they also provide a social service; their visit is often the only one that residents get. I want to draw the Minister’s attention to two quite shocking cases that constituents have brought to me. One constituent, despite using the tracking system, has had their application form to join the Royal Navy go awry, which is obviously causing huge delays. Another constituent successfully gained compensation from Royal Mail for a late delivery, but the cheque, which was sent in the post, bounced. I would like the Minister to allay some of our fears about crucial public services, and the postal communications from our Departments and arm’s length bodies.

[Mr Speaker]

That was a very late delivery. I am going to finish this urgent question at 1.30 pm, so let us help each other by being speedy. The Minister will show me how quickly he can reply.

[Blair McDougall]

My hon. Friend makes an important point, although I notice that everything seems to be the best in her constituency. The problem is not just missed post, but missed opportunities, like the one that she described. That is exactly why we will continue to pressurise Royal Mail, directly and through the regulator, to improve the service in areas like hers.

--- Later in debate ---

[Phil Brickell (Bolton West) (Lab)]

I thank the Minister for his constructive engagement with me over the past few weeks on Royal Mail’s poor services in my Bolton West constituency. I know that he shares my utter frustration at the current service provision. May I flag with the Minister a letter that I sent to Horwich constituents on 13 February, updating them on the progress that I had made with the Minister on this matter? A constituent got in touch to say that the letter was only received on 25 February, some 12 days later, alongside missing correspondence from the Driver and Vehicle Licensing Agency, the NHS and the Department for Work and Pensions. Another constituent in Bolton received a Christmas card on 7 March that had been posted before 14 December. When will my constituents see an improvement in Royal Mail services?

[Mr Speaker]

Can we try to shorten the questions? Some people are not going to get in, and that really worries me, as this subject matters to all of us—especially me, as I have the best post offices and the best posties.

[Blair McDougall]

I reassure my hon. Friend’s constituents that his efforts to transmit their dissatisfaction have been heard at the highest level. If there is a prize for dark irony, I think he has probably just won it. It is because we want this situation to improve as quickly as possible that we are taking the action that I have described, and continue to put on the pressure.

--- Later in debate ---

[Blair McDougall]

My hon. Friend shows passion and anger, which he has also shown to me in private when raising these issues. Again, that speaks to how frustrating it is for us as Members of Parliament to raise a problem—on any issue—and then to be told that it does not exist when our constituents are telling us otherwise. Royal Mail has a responsibility to address the problem in a direct and straightforward manner, because if we are not recognising the problem, we will not deal with it.

[Mr Speaker]

This has been an excellent debate, and I thank Members for the way it has been delivered on behalf of all our constituents. Royal Mail’s management has a problem, and that has certainly been highlighted today.