Contribution
My Lords, I start by thanking the noble Lord, Lord Pack, for securing this debate. I also welcome the Minister, the noble Lord, Lord Sarwar, and congratulate him on being introduced to your Lordships’ House today and on making his maiden speech from the Dispatch Box. I know what that feels like. The Chief Whip gave me a week between my introduction and having to make my maiden speech from the Dispatch Box. I noticed that today, the Government Chief Whip has simply given the noble Lord a slightly longer lunch break to prepare. I look forward to hearing his speech and wish him a long career in government.
I was slightly unsure today what I would talk about in this debate, and I decided to do a little bit of research at home in preparation. I used my wife and my eldest daughter to get a sense of how effective parcel delivery services are in this country. I must say that, in west London, they are incredibly effective. Parcels regularly arrive on time, and there are very few problems. Later in my speech I will come on to digital tech and how that interacts with people. I also want to pay tribute to the Passport Office, which I recently had to use to renew my passport. All the way through that process, the tech, the parcel delivery and the communication between the office and me was really quite extraordinary.
I declare at this stage that I am a member of the Public Services Select Committee. Three years ago, the committee carried out an inquiry into homecare medicine. It was an extraordinary inquiry, which started quite small but began to uncover real differences across the whole of the United Kingdom in the delivery of medicines. That is why we need to focus on this and work incredibly hard.
Parcel delivery has become an essential part of how we live and how business operates. For many small businesses, the parcel is not simply the final step in a transaction; it is the transaction. Reliability matters enormously, and the evidence suggests that there is still considerable room for improvement. Ofcom found that, while 78% of consumers were genuinely satisfied with parcel services, 68% had experienced a delivery problem in the previous six months.
When something does go wrong, resolving it can be almost as frustrating. Some 47% of those who experienced a delivery problem then encountered further difficulties trying to resolve it. For small businesses, that can mean additional costs, lost time and potentially a lost customer. For vulnerable customers, it could mean a lost medicine that is essential to that individual’s health. The evidence shows that those with an impacting or limiting condition are more likely to experience problems with deliveries. Accessibility remains one of the weaker parts of the customer experience.
We should be careful about assuming that a more digital service is necessarily a more accessible one. Technology should make services easier to use, as in the example I gave at the beginning of my speech of the Passport Office. It should not create another barrier when something goes wrong. Therefore, when we assess whether the system is working, we should be looking not only at overall delivery performance but at whether it is working for those customers who have fewer alternatives when it fails.
I believe in a vibrant private sector, so the Government should not be dictating a business’s operations for it, but they do have a role in protecting consumers, setting standards and ensuring accountability. We already have substantial data, an independent regulator, enforcement powers and improvement plans, as the noble Lord, Lord Pack, highlighted in his opening remarks. I would like to see a clearer test of whether those interventions are working. I therefore ask the Government to set out a clear timetable for assessing the effectiveness of Ofcom’s current approach, including how it will compare performance and customer outcomes across all providers, and a commitment to review the regulatory framework if it is not delivering sustained improvement.
Royal Mail provides a particularly clear test, given its specific quality of service obligations and the improvement plan now in place. However, the principle should apply across the wider parcel market. That would not mean imposing identical obligations on every operator; it would mean making sure that we can identify where intervention is working, where it is not and changing course when the evidence demands it.
In responding to the debate, will the Minister set out how the Government intend to assess whether Ofcom’s current approach is delivering sustained improvement across the parcel market? Given the Business and Trade Committee’s recommendation for a regulatory reset, will he set out what would cause the Government to conclude that the existing regulatory approach is no longer delivering the improvement that consumers and businesses reasonably expect? Competition is valuable, but precisely because it should deliver better services, innovation and choice. For the small businesses waiting for their goods to arrive and for the vulnerable customer who needs to know that their needs will be understood, the test is ultimately very simple: can they trust the system to work?