Millions of pensioners, people on low incomes and those on benefits could get postage stamps cheaper under new measures being considered by Ofcom.
In a scheme similar to social tariffs offered by phone and broadband providers, Ofcom is looking at stamp pricing, to make sure everyone has access to an affordable universal postal service.
In its consultation document, Ofcom said: “We periodically review the affordability of postal services in the UK. Today, we have kicked off our latest round work in this area by sharing our early thinking so interested parties can provide input before we consult on firm proposals next year.”
According to the most recent data available from the ONS, in 2023/24 the average UK household spent 60p per week on all postal services, representing 0.11% of total weekly expenditure, down from 90p in 2020/21. This includes delivery charges for items purchased online, so the average amount people spend on sending letters will be even less than this.
How much is a first class stamp?
The price of a First Class stamp has risen from 85p to £1.70 in the last four years, and Second Class stamps have increased from 66p to 87p over the same period.
This week the new Christmas stamps were released, marking the first festive season since prices hit £1.70.
Ofcom explains in the document it has a duty to ensure people have access to an affordable universal postal service, and to also make sure the universal service is financially sustainable.
Royal Mail is the designated provider of the universal service in the UK, and continues to be the UK’s only door-to-door deliverer of letters on a national scale. “This means we cannot rely on competition to ensure prices remain affordable,” it says.
“Meanwhile, as the number of letters being delivered to each house on a given round continues to decline, the cost of delivering each letter has increased. This has weakened Royal Mail’s financial position and threatens the sustainability of the universal service.
“In recent years, we have sought to secure an affordable and sustainable service by imposing a safeguard cap on Second Class stamp price, while leaving Royal Mail with pricing flexibility for First Class. The current Second Class cap runs until March 2027, and we need to begin the process of reviewing whether a new cap should be implemented.”
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A targeted discount scheme for vulnerable customers could provide more help to those who face the greatest challenges in affording to send letters.
This approach would be similar to a ‘social tariff’, such as the existing cheaper phone and broadband packages available for people claiming Universal Credit, Pension Credit or other benefits.
“We have set out our initial thinking on the key principles and design choices which could lead to an effective scheme,” it says.
“We welcome comments on the issues and views we have set out today by 5 December 2025, and will take these into account in developing our proposals for consultation, which we plan to publish in the first quarter of 2026.”