Select Committee · Business, Innovation, Science and Trade Committee

Royal Mail

Status: Open Opened: 16 Mar 2026 1 recommendation 8 conclusions 1 report

Reports

1 report

Recommendations & Conclusions

9 items
5 Conclusion 2nd Report - The regulation of postal services

There are many reasons for Royal Mail’s persistent poor performance and today it is a...

Conclusion · source text

There are many reasons for Royal Mail’s persistent poor performance and today it is a private company, operating in a market that has changed beyond recognition in the 13 years since privatisation. Ofcom however is directly accountable to Parliament, and through Parliament to the public, for ensuring the nation’s postal service meets the standard expected. Today, we conclude Ofcom is failing as the statutory regulator of the postal service to deliver on the task it has been set by Parliament. (Conclusion, Paragraph 18)

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Department for Business and Trade
6 Conclusion 2nd Report - The regulation of postal services

We are concerned that Ofcom’s regulatory approach has for years now failed to bring about...

Conclusion · source text

We are concerned that Ofcom’s regulatory approach has for years now failed to bring about the required step change in Royal Mail’s performance. Three consecutive years of fines and a demand for an “urgent” improvement plan were not enough, as both short-term improvements and long-term USO reform became ensnared in an industrial dispute between Royal Mail and the CWU. It appears to have taken the Secretary of State’s direct 9 intervention to resolve this crisis. We are grateful to the Secretary of State for his action, but he is not the statutory regulator of the postal service. (Conclusion, Paragraph 19)

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Department for Business and Trade
7 Conclusion 2nd Report - The regulation of postal services

Beyond the immediate concerns with Royal Mail, we also have growing concerns that Ofcom is...

Conclusion · source text

Beyond the immediate concerns with Royal Mail, we also have growing concerns that Ofcom is not up to the job of regulating a postal market that is growing in competition and complexity. Much of the mail that our constituents rely on, from hospital appointments to energy bills, falls outside the Universal Service Obligation regulated by Ofcom. The public increasingly expects next-day delivery by e-commerce outlets and competitors to Royal Mail make extensive use of its infrastructure without contributing to its costs. It is clear that Ofcom needs to reset its approach to regulating of postal services. The evidence we have heard indicates that the public do not distinguish between mail that is outside the USO and mail that is within it. A common complaint is that important correspondence such as medical appointments is being missed. There should be an assessment of whether this mail should be covered by the USO. (Conclusion, Paragraph 20)

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Department for Business and Trade
8 Conclusion 2nd Report - The regulation of postal services

Ofcom must deliver better regulation of the postal market.

Conclusion · source text

Ofcom must deliver better regulation of the postal market. It should produce a clear roadmap for achieving this which sets out the statutory and non-statutory tools Ofcom currently has at its disposal, and how it intends to use these to bring about demonstrable improvements in public satisfaction with postal services. This must not be limited to services covered by the Universal Service Obligation, but also include Access mail and services delivered by Royal Mail’s competitors. Where Ofcom is of the view that it currently lacks the remit and/or powers to address particular issues in the postal sector, it should clearly set out these gaps to this Committee. This reset should include the ability to provide basic operational performance data to Parliament, including the specific number of letters and parcels delivered outside performance targets. It should also include a far more assertive approach to spot-checking whether and how often parcels are prioritised over letters. (Recommendation, Paragraph 21)

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Department for Business and Trade
9 Conclusion 2nd Report - The regulation of postal services

We respect Ofcom’s operational independence, and in the first instance it should be for the...

Conclusion · source text

We respect Ofcom’s operational independence, and in the first instance it should be for the regulator itself to reform its approach. However, Ofcom is ultimately given its remit by Parliament. This remit can be changed. (Conclusion, Paragraph 22)

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Department for Business and Trade
10 Conclusion 2nd Report - The regulation of postal services

If the improvement plan we have recommended fails to deliver meaningful change within six months...

Conclusion · source text

If the improvement plan we have recommended fails to deliver meaningful change within six months of this Report, the Secretary of State should consult on statutory changes to Ofcom’s duties and/or powers, to ensure it is fit for the 21st-century postal market. As a first step, the Secretary of State should present a proposal to this Committee for levelling the playing field between Royal Mail and its competitors. This should ensure that competitors are not able to free-ride on Royal Mail’s infrastructure, nor undercut employment conditions through gig economy models. Ministers 10 should consider a wide range of options, including a levy on competitors to reflect the benefit they enjoy from the use of the network, or minimum standards for other operators to adhere to, from both a consumer and worker perspective. (Recommendation, Paragraph 23) 11

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Department for Business and Trade

Oral evidence sessions

1 session

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Date Session and witnesses Source
24 Mar 2026
Panel 1; Panel 2; Panel 3
Alistair Cochrane · Royal Mail, Daniel Křetínský · EP Holding, Dave Ward · Communication Workers Union, Fergal Farragher · Ofcom, Ian Strawhorne · Ofcom, Martin Walsh · Communication Workers Union, Natalie Black · Ofcom, Ricky McAulay · Royal Mail
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Who gave evidence

8 witnesses

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WitnessOrganisationSessions
Alistair Cochrane · Chief Executive Officer Royal Mail 1
Daniel Křetínský · Chairman EP Holding 1
Dave Ward · General Secretary Communication Workers Union 1
Fergal Farragher · Director, Infrastructure and Connectivity Ofcom 1
Ian Strawhorne · Director, Enforcement Ofcom 1
Martin Walsh · Deputy General Secretary (Postal) Communication Workers Union 1
Natalie Black · Group Director for Infrastructure and Connectivity Ofcom 1
Ricky McAulay · UK Operations Director Royal Mail 1

Correspondence

15 letters

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PublishedDirectionLetter
15 Jul 2026 To committee Letter from Ofcom relating to the Committee's Report on the Regulation of postal services, 9 July 2026
16 Jun 2026 To committee Letter from Ofcom relating to the Committee's report on regulation of postal services, 22 May 2026
19 May 2026 From committee Letter to Royal Mail relating to mail delivery performance, 30 April 2026
19 May 2026 To committee Letter from Citizens Advice relating to Royal Mail session, 18 May 2026
19 May 2026 To committee Letter from Royal Mail relating to information requested in the letter of 30 April from the Committee, 13 May 2026
19 May 2026 Additional written evidence from CWU on Royal Mail
22 Apr 2026 To committee Letter from Royal Mail relating to the Quality of Service Improvement Plan for the Postal Universal Service, 21 April 2026
15 Apr 2026 To committee Letter from the Communication Workers Union relating to the Committee's letter of 27 March following the evidence session on Royal Mail, 13 April 2026
15 Apr 2026 To committee Letter from the Chief Executive of Ofcom relating to the Committee's letter of 27 March following the evidence session on Royal Mail, 7 April 2026
15 Apr 2026 To committee Letter from Royal Mail relating to the Committee's letter of 27 March following the evidence session on Royal Mail, 8 April 2026
15 Apr 2026 To committee Letter from EP Group relating to the Committee's letter of 27 March on the acquisition of Royal Mail, 8 April 2026
27 Mar 2026 From committee Letter to Communication Workers Union relating to the Committee's evidence session on Royal Mail, 27 March 2026
27 Mar 2026 From committee Letter to Ofcom relating to the Committee's evidence session on Royal Mail, 27 March 2026
27 Mar 2026 From committee Letter to EP Group relating to the acquisition of Royal Mail, 27 March 2026
27 Mar 2026 From committee Letter to Royal Mail and EP Group relating to the Committee's evidence session on Royal Mail, 27 March 2026