Performance of Royal Mail

Mike Wood Excerpts

Monday 26th October 2026 Commons Chamber

[David Reed]

We have yet more consensus. This is where we have to really dig into the universal service obligation and make sure that there are significant penalties if Royal Mail does not do what it has signed up to do and what we have asked it to do as a company.

[Mike Wood (Kingswinford and South Staffordshire) (Con)]

My hon. Friend refers to significant penalties. Ofcom has levied fines over the past few years, but that is clearly not leading to improvements in the service. Does my hon. Friend agree that it feels as though Royal Mail is treating these fines as part of the cost of doing business, and seeing it as cheaper to pay the fine than to address the problem?

[David Reed]

My hon. Friend hits the nail on the head. If we look at those numbers again—losses of £400 million three years ago and then £200 million, followed by a £14 million profit—they show that Royal Mail is baking the fines into its operating model and cutting away more and more muscle. We have to make sure that there is a cost that is unacceptable to Royal Mail and its shareholders so that we do not see these problems again.

I am conscious that many Members want to speak in the debate so I will come straight to my questions for the Minister. Please will the Minister look at what the Government can do to address Royal Mail’s new delivery model? Secondly, on the imposition of significant fines, does the Minister believe that Ofcom’s current regulatory approach is effective, and what more can be done to hold Royal Mail to account?