Royal Mail: Universal Service Obligation

I will call only Sir Ashley Fox and the Minister to make speeches. There will not be an opportunity for Sir Ashley to sum up after the debate.

I beg to move,

That this House has considered Royal Mail and the universal service obligation.

It is a pleasure to serve under your chairmanship, Sir Desmond. It is also a pleasure to move the motion and introduce this debate on Royal Mail and the universal service obligation. This issue affects every household and small business in the country. The postal service is a vital part of our communities. Its future and the changes to the universal service obligation, or USO, particularly affect my constituents.

Our postmen and women are among the most remarkable workers in the country. Out on their routes, come rain or shine, they are often well loved in their communities. The pandemic showed us at first hand the impact that a good postie has—especially for elderly or vulnerable people who were shielding or who had little other human interaction in that period. People in rural areas rely on the service to stay connected.

I commend the hon. Gentleman for securing this debate. I also respect the men and women of Royal Mail but, in my office, one major issue has been delay. For those who are elderly, with sometimes complex and severe health problems, the mail is not arriving in time. They miss their appointments and the follow-up. The fines from Government are not working. What else does the hon. Member think the Government should do to ensure that Royal Mail is accountable to our constituents for the delivery of mail?

If the hon. Gentleman stays, he will find that I answer most of those points in the remainder of my speech. Since 1840, the principle of the USO has been simple: everyone in the United Kingdom, no matter where they live, should have access to a reliable and affordable postal service. It is a promise of fairness. If I post a letter in Bridgwater, it costs the same to deliver to an address in Inverness as it does to one down the road in Taunton.

I fully agree with the USO, but in some postcodes in my constituency 20% of first-class mail is delivered late. In Buckland, there is no mail service at all when the postlady is on holiday. Does the hon. Member agree that the Government must work with Royal Mail to improve service?

Indeed. The hon. Gentleman will find that if only 20% do not get next-day delivery, they are doing better than average; that does not speak highly of Royal Mail. Since I was elected last year, many of my constituents have told me that Royal Mail is not working as it should. After hearing those concerns first hand, I visited the sorting office in Bridgwater.

In January, I ran a sample survey to ascertain the scale of the problem in my constituency. I ensured that each town and village was sampled, as I wanted to ensure that every area was covered. I had hundreds of responses. Only one in three got a delivery every day; 15% said they received post once a week or less frequently.

In North Petherton, a constituent repeatedly received a bundle of letters delivered once a week, with no Royal Mail van spotted during the rest of the week. I had a report of no deliveries in Othery for more than a fortnight. My constituents had to travel to the sorting office in Bridgwater to collect post personally. In Cossington, a constituent’s weekend magazine subscription went missing for seven weeks in a row. No one area had a wholly good or wholly bad service. In Burnham-on-Sea, 48% of respondents gave Royal Mail 10 out of 10 for reliability of service, and 30% gave it zero out of 10.

It seems that if a household is on a route with a good postie, it gets a great service, but if that route is not allocated, the letters sit in the rack for days on end with nothing happening. That is simply bad management.

I thank the hon. Gentleman for securing the debate. That situation has occurred at Bexleyheath sorting office in my constituency, and Royal Mail asked whether I could help advertise its vacancies. Should Royal Mail do more to try to fill vacancies on routes that are not filled?

Indeed it should. We have evidence of poor management and, dare I say, occasionally unco-operative unions.

I have found that local post workers are really keen to innovate where they can to try to deal with the issues. One thing they pioneered was putting the NHS barcode on healthcare-related letters. Does the hon. Member agree that the Minister should liaise with his colleagues in the Department of Health and Social Care to make sure that every NHS organisation puts that barcode on so that those letters can get to the people who need them?

I agree entirely with the right hon. Lady.

I know that there are plenty of local problems, but I also want to look at the national picture. In the first quarter of this financial year, Royal Mail’s performance under the existing USO targets fell well short of expectations. The target for first-class deliveries is 93%, meaning that 93% of first-class post should arrive the next working day. In practice, Royal Mail managed only 75.9%. For second-class deliveries, the target is 98.5% delivered within three working days, yet only 89.3% were delivered on time. That is millions of items delayed across the country. When we look at daily deliveries, the story is even more concerning.

In 2024-25, the proportion of daily routes that were delivered was 87.8%. That is against a target of 99.9%. On any given day, more than one in 10 routes were simply not delivered at all. That explains why locally, even within a small village, some people appear to get a good service while others get next to no post at all. A constituent in Spaxton wrote to me to let me know that his postie had complained of severe staffing shortages and that the new contracts being offered were making the jobs unattractive to new starters.

I wrote to the Post Office in July, three and a half months ago, and it emailed a response this week—I think three and a half months might be a record. The posties in the west highlands, a very rural area, get paid an amount of money that is not attractive to them. We have areas in Wester Ross and Skye that are getting no post at all and have not for some weeks. Does the hon. Member not agree that the Post Office should use the flexibility that it has to pay a reasonable sum to attract postal staff?

Yes, I agree. We can all agree that Royal Mail faces real challenges. Many people now communicate primarily online and fewer letters are sent, which impacts revenue.

I refer to my entry in the Register of Members’ Financial Interests. The hon. Gentleman mentioned the unions earlier. We could perhaps acknowledge that the Communication Workers Union has called out the clear mismanagement of the senior leadership and the need for Royal Mail to fix its recruitment retention crisis.

Does the hon. Gentleman not agree with me that the issue is much wider across the sector in that it is vastly unregulated, creating an advantageous environment for parcel couriers such as Amazon? That has an impact on Royal Mail’s ability to deliver its services when it is being fined by Ofcom. Some see that as a very punitive measure, given that Amazon and other parcel couriers carry on unregulated and make no contribution to the universal network itself. They hive off profits and pay workers a pittance.

I am grateful to the hon. Lady for reading out the Communication Workers Union press release. I did refer earlier to bad management and occasionally militant unions. I think good management will overcome the problems, but I do not think the solution lies in more regulation of other private operators. I want to make a little progress now.

The national figures that we see represent a consistent decline in performance over several years, despite the clear legal and moral obligations that come with being the nation’s postal service. Ofcom has noticed. In 2022-23, Royal Mail was fined £5.6 million for failing to meet its delivery targets. The following year, 2023-24, the fine almost doubled to £10.5 million. In 2024-25, it more than doubled again—a staggering £21 million penalty for failing to deliver the service that the public expects and deserves.

In the face of mounting pressures, changes to the USO have been adopted. I must admit that I am sympathetic to some of the arguments that have been made. If I asked many of my constituents whether they would rather have post delivered consistently every other day, they would gladly accept, but I worry that that will not happen.

Under the changes being discussed, the number of delivery days would be reduced, meaning fewer days on which post must actually be delivered. But that is not all. The performance targets have been watered down. On first-class mail, the target is set to drop from 93% to 90%. For second-class post, the target drops from 98.5% to 95%. The post will now come less frequently and Royal Mail expects to deliver even less of it on time.

In my local survey, residents scored reliability at an average of only five out of 10—some, of course, scored as much as 10, and others, zero. They already experience an unreliable service. These changes will not improve either the perception or the reality.

It is a pleasure to serve under your chairmanship, Sir Desmond. I congratulate the hon. Member for Bridgwater (Sir Ashley Fox) on securing this important debate on Royal Mail and the USO, an issue that matters deeply to households and to businesses across the country. Royal Mail is an iconic part of the UK’s infrastructure. The postie remains a familiar part of every city, town and village, providing a vital service to communities around the country. As other hon. Members have done, I pay tribute to the dedication of posties. I know, from spending time out on delivery with posties from the Barrhead sorting office in my constituency, the care that they have for their customers, and particularly their vulnerable customers. The USO underpins the network, guaranteeing that letters and parcels can be sent anywhere in the UK at a uniform price, six days a week. That principle ensures that businesses can reach customers nationwide and that families can stay connected.

I represent a partly rural constituency, Morecambe and Lunesdale, so my constituents rely on the universal service obligation. They also rely on regular mail deliveries for vital information such as hospital appointments. But my constituents, particularly in villages like Endmoor, are suffering with irregular and delayed deliveries. Does the Minister agree that my rural constituents deserve a good postal service, and that Royal Mail should focus on delivering one? What steps is the Minister taking to secure that service?