People receiving benefits may soon enjoy reduced prices for stamps as part of potential new initiatives being reviewed by Ofcom.
Ofcom is exploring the introduction of a discount scheme akin to existing social tariffs that provide discounted mobile and broadband services to benefit recipients.
Over the past four years, the cost 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.
In a recent announcement, Ofcom has initiated a review process seeking public input until December 5, 2025, with plans to release a consultation in early 2026. Royal Mail retains authority over setting stamp prices in the UK.
In response to these developments, a spokesperson from Royal Mail assured their commitment to engaging with Ofcom’s review process, emphasizing their efforts to maintain affordable prices while balancing the operational costs associated with providing universal postal services.
Royal Mail recently faced a £21 million fine for failing to meet its annual delivery targets for first and second-class mail. Despite previous fines, Ofcom’s latest findings revealed that Royal Mail’s on-time delivery rates for first-class and second-class mail fell short during the 2024/25 financial year.
Ofcom has granted approval for Royal Mail to alter its second-class letter delivery schedule, transitioning to alternate weekday services, effective soon. However, Royal Mail must uphold Monday to Saturday deliveries for first-class post and ensure second-class letters are delivered within three working days under its universal service obligation.
Martin Seidenberg, Chief Executive of International Distribution Services (IDS), acknowledged the substantial challenges ahead, extending well into 2026, emphasizing the importance of a meticulous approach to ensure customer satisfaction.
Financially, Royal Mail reported underlying earnings of £12 million for the year ending March 31, a significant improvement from the previous year’s losses amounting to £336 million. Despite this progress, Royal Mail remains in the red when including redundancy costs, with underlying operating losses of £8 million.
Overall, Royal Mail continues to navigate operational changes and financial challenges as it strives to enhance service quality and financial stability amidst evolving market demands.