Committee publication · Correspondence · 16 June 2026
Letter from Ofcom relating to the Committee's report on regulation of postal services, 22 May 2026
From: Business and Trade Committee
Inquiry: Royal Mail
Summary
Dame Melanie Dawes, Ofcom Chief Executive, responds to the Business and Trade Committee's report on postal services regulation (published 21 May 2026). Ofcom confirms Royal Mail's poor performance is unacceptable and reiterates its regulatory approach: modernised obligations, performance targets, £37m+ in fines, and a forthcoming investigation into 2025/26 results. Dawes clarifies Ofcom's limited remit on industrial disputes, competitor access pricing, and commercially sensitive data disclosure.
Key findings
- Ofcom acknowledges Royal Mail's performance has been unacceptable for several years, with serious impacts on families, communities, and businesses across the UK
- Royal Mail has published an improvement plan committing to return performance to regulated targets by April 2027 and invest £500 million over five years, with progress constrained by ongoing industrial disputes
- Ofcom has fined Royal Mail more than £37 million in recent years for poor performance and plans a full investigation into 2025/26 results, including consideration of parcel prioritisation
- Ofcom clarifies it cannot intervene in industrial disputes, mediate between employers and trade unions, or set commercially-determined wholesale access prices—these are set by Royal Mail
- Ofcom was prohibited by legislation from disclosing late-letter delivery figures without Royal Mail's consent, which was not granted; Royal Mail subsequently provided the data directly to the Committee
Tone
ProceduralTopics
Key actors
Dame Melanie Dawes, Liam Byrne MP, Ofcom, Royal Mail, Business and Trade Committee
Notable line
“It is ultimately for Royal Mail to improve its own operational performance; no regulator can implement the day-to-day changes required on the ground.”
Key Quotes
“… my Board and I strongly agree that Royal Mail's current performance is not acceptable. For several years, too many deliveries have been delayed, and this has had a serious impact on families, communities and businesses”
“It is not the role of the regulator to intervene in, mediate, or resolve industrial disputes between employers and trade unions, and Ofcom does not have the powers to do so.”
“Royal Mail has been fined more than £37 million in recent years for poor performance, and we have been clear that it must now invest, improve and deliver for consumers.”
“The price paid by other operators is determined by Royal Mail through these commercial agreements, not by the regulator.”
Source · parliament.uk record ↗