Royal Mail: Universal Service Obligation
The question
To ask the Secretary of State for Business and Trade, what recent assessment he has made of the effectiveness of levying fines on Royal Mail to secure compliance with Universal Service Obligation targets.
Answered by Blair McDougall
Ofcom, as the independent regulator for postal services, is responsible for monitoring and enforcing Royal Mail's compliance with its Universal Service Obligation targets. It has taken enforcement action where failures have been identified, including fining Royal Mail £21 million for its 2024-25 performance. These financial penalties are designed to incentivise compliance and deter future breaches.
Additionally, Ofcom required Royal Mail to publish a quality of service improvement plan, which it did on 21 April. The regulator continues to monitor delivery against that plan to ensure service levels improve.
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