People receiving benefits may soon see reduced costs for postage stamps as Ofcom considers implementing a new discount program akin to existing social tariffs for discounted mobile and broadband services.
Over the past four years, the price of first-class stamps has surged from 85p to £1.70, while second-class stamps have climbed from 66p to 87p during the same period.
Ofcom has initiated a review process, seeking public input until December 5, 2025, with plans to release a consultation in early 2026. Royal Mail, the entity responsible for setting stamp prices in the UK, will be engaged in this review.
A spokesperson for Royal Mail stated, “We will collaborate fully with Ofcom on its review. We strive to maintain competitive prices while managing the rising costs associated with delivering the Universal Service, which involves a complex network and a large workforce.”
Royal Mail recently faced a £21 million fine for failing to meet first and second-class mail delivery targets, with Ofcom noting that only 77% of first-class mail and 92.5% of second-class mail were delivered on time during the 2024/25 fiscal year.
As part of its service obligations, Royal Mail has been authorized by Ofcom to adjust second-class letter deliveries to every other weekday, planning to roll out these changes soon while maintaining first-class deliveries six days a week.
The chief executive of International Distribution Services (IDS), Martin Seidenberg, acknowledged the significant challenges ahead, emphasizing the need for a careful and prolonged implementation process to ensure customer satisfaction.
Despite reporting underlying earnings of £12 million for the year ending March 31, Royal Mail remained in the red due to operational losses of £8 million when factoring in redundancy costs.
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