United Kingdom’s postal regulator, Ofcom, is facing mounting criticism from Members of Parliament over what has been described as a failure to effectively tackle Royal Mail’s persistently poor performance, amid growing concerns over delayed deliveries, weakened oversight and the future of the country’s universal postal service.
A new report published by the Business and Trade Committee raised serious doubts about whether Ofcom is adequately equipped to regulate an increasingly competitive and complex postal market.
According to the Business and Trade Committee Chair, Liam Byrne, “millions of people are paying the price for a postal service that is simply not delivering.”
“We were deeply concerned by the apparent lack of any serious investigation into whether letters are being deprioritised in favour of more profitable parcels. We recognise that the postal market has changed beyond recognition.”
Liam Byrne
He added that, “the universal service remains one of Britain’s great civic guarantees, but confidence in it is ebbing away, and Ofcom now has six months to prove it has the power and drive to regulate the 21st-century postal market.”
The committee warned that confidence in Britain’s postal system is rapidly declining as millions of people continue to experience significant delivery delays despite repeated fines imposed on Royal Mail.
Lawmakers argued that Royal Mail’s performance remains “unacceptable” even after being penalised by Ofcom every year since 2022.
According to figures cited in the report, only 74.9 per cent of first-class letters were delivered the next day between April 2025 and January 2026, falling 18.1 percentage points below the company’s target.
The committee estimated that around 126 million first-class letters were delivered late during that period, with delays reportedly affecting important services including hospital appointments, benefit decisions, and legal notices.
The report suggested that broader structural problems within the postal industry are contributing to Royal Mail’s difficulties. MPs raised concerns that large parcel delivery firms, including Amazon and other logistics companies, are benefiting from Royal Mail’s universal service network while avoiding the financial burden associated with maintaining nationwide delivery infrastructure.
The committee argued that private parcel firms are effectively “hiving off profits” by relying on Royal Mail to complete deliveries to remote or harder-to-reach areas without contributing to the underlying costs of the network.
Moreover, the Lawmakers further criticised Ofcom for allegedly failing to provide Parliament with clear information regarding the true scale of delayed deliveries. According to the committee, Royal Mail refused to release detailed figures on the grounds of commercial confidentiality, a restriction MPs emphasised should be reconsidered if it prevents proper public accountability.
As part of its recommendations, the committee has given Ofcom six months to demonstrate that it has both the authority and determination necessary to regulate the modern postal market effectively.
MPs warned that if improvements are not made within that timeframe, the Secretary of State should consider introducing statutory reforms to strengthen the regulator’s powers.
Ofcom Defends Royal Mail Oversight Amid Growing Criticism From MPs
Furthermore, Britain’s postal regulator, Ofcom, has defended its handling of Royal Mail amid mounting criticism from lawmakers and union leaders over the company’s persistent delivery failures and deteriorating customer service standards.
The regulator insisted it had already taken decisive enforcement action against Royal Mail following accusations from MPs on the Business and Trade Committee that it had failed to effectively oversee the struggling postal operator.
Responding to the backlash, an Ofcom spokesperson stated the regulator had used the full extent of its powers to hold the company accountable for poor performance.
“As we made clear in our evidence to the committee, Ofcom has acted decisively – not only by using the full extent of our enforcement powers to fine Royal Mail more than £37 million for its poor performance, but also demanding a credible improvement plan from the company, backed by investment.”
Ofcom Spokesperson
The regulator also defended changes made to postal service rules, stating, “we’ve also modernised our rules to reflect what people need and give the postal service the best chance of survival.”
Ofcom maintained that the key issue now lies with Royal Mail’s ability to follow through on its promises to modernise operations and improve services after years of criticism from customers and businesses alike.
The regulator noted that Royal Mail had recently reached an agreement with the Communication Workers Union on plans to modernise its operations, supported by a £500 million investment commitment. However, Ofcom stressed that urgent implementation of the reforms was now essential.
Meanwhile, the Communication Workers Union strongly backed the committee’s findings, accusing Ofcom of repeatedly failing in its regulatory responsibilities.
Communication Workers Union General Secretary, Dave Ward indicated that, postal workers across the country would welcome the committee’s conclusions, arguing that Ofcom had failed to address customer service problems.
“If Royal Mail stands a chance in the future, we must see a seriously reformed Ofcom that can honestly call out the problems and recommend the changes that are so clearly needed.”
Dave Ward
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