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Written question asked by Ellie Chowns (Green Party) on Thursday, 23 October 2025, in the House of Commons. It was due for an answer on Monday, 27 October 2025. It was answered by Blair McDougall (Labour) on Tuesday, 28 October 2025 on behalf of the Department for Business and Trade.

Royal Mail: Standards

Question

To ask the Secretary of State for Business and Trade, what assessment he has made of the effectiveness of Ofcom’s financial penalties in improving Royal Mail’s ability to meet its performance targets; and if he will take steps to ensure that future fines are reinvested to increase (a) staffing levels and (b) service quality within Royal Mail rather than being paid into the Consolidated Fund.

Answer

Ofcom’s financial penalties are regulatory decisions in which the government does not have a role. The government expects Ofcom, as the independent regulator of postal services, to ensure the provision of a financially sustainable and efficient universal postal service.

Financial penalties are designed to incentivise compliance and deter future breaches, rather than to fund specific operational improvements. As with other regulatory fines, any sums collected are paid into the Consolidated fund in accordance with standard Treasury practice, unless explicit statutory provision or a Treasury-approved agreement allows otherwise.

It is for Royal Mail, as an independent company to determine its staffing levels and improve its performance to ensure it meets its Universal Service Obligation. It is clear that Royal Mail’s improvements have not been good enough. As such, Ofcom has told Royal Mail it must publish and deliver a credible improvement plan.

Secondary information

Type
Written question
Reference
84882
Session
2024-26
Subjects
Consolidated Fund Finance Fines Ofcom Standards Royal Mail
Link
View this Written question on www.parliament.uk