People receiving benefits may soon enjoy reduced prices for postage stamps as part of new proposals under consideration by Ofcom.
The regulatory body aims to implement a discount program akin to existing social tariffs that provide discounted mobile and broadband services for benefit recipients.
Over the past four years, the cost of first-class stamps has climbed from 85p to £1.70, while second-class stamps have increased from 66p to 87p during the same period.
Ofcom has initiated a review seeking public feedback until December 5, 2025, with plans to release a consultation in early 2026. Royal Mail is responsible for determining stamp prices in the UK.
A spokesperson for Royal Mail stated, “We will collaborate extensively with Ofcom during their review process. We carefully assess pricing to maintain affordability while managing the rising costs associated with delivering the Universal Service.”
Royal Mail recently incurred a £21 million fine for failing to meet its annual targets for timely first and second-class mail delivery. Ofcom’s findings revealed that during the 2024/25 fiscal year, only 77% of first-class mail and 92.5% of second-class mail met delivery targets.
Ofcom has granted Royal Mail approval to discontinue Saturday deliveries for second-class letters and transition to an alternating weekday service in the upcoming months. However, the obligation to maintain Monday to Saturday deliveries for first-class post and meet the three-day target for second-class letters remains under the universal service requirement.
Martin Seidenberg, the CEO of International Distribution Services (IDS), acknowledged the significant undertaking ahead, extending into 2026. He emphasized the importance of a thorough approach to ensure customer satisfaction without constant changes.
Royal Mail reported underlying earnings of £12 million for the year ending on March 31, a marked improvement compared to the £336 million loss in the previous year. Despite progress, incorporating redundancy costs led to an underlying operating loss of £8 million for Royal Mail.
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