People receiving benefits may soon enjoy reduced prices for stamps as per potential changes proposed by Ofcom.
Ofcom is considering implementing a new discount program, akin to existing social tariffs offering discounted rates on mobile and broadband services for benefit recipients.
Over the past four years, the cost of first-class stamps has escalated from 85p to £1.70, while second-class stamps have surged from 66p to 87p during the same period.
A review initiated by Ofcom invites public feedback until December 5, 2025, with plans to release a consultation in early 2026. It is noteworthy that Royal Mail is responsible for determining stamp prices in the UK.
In response to Ofcom’s review, a spokesperson from Royal Mail stated their commitment to engaging fully with the regulator. They emphasized Royal Mail’s conscientious approach to pricing, striving to maintain affordability while managing the rising expenses associated with ensuring universal mail delivery.
Furthermore, Royal Mail faced a £21 million fine for failing to meet annual delivery targets for first and second-class mail. Despite the requirement of delivering 93% of first-class and 98.5% of second-class mail on time, during the 2024/25 fiscal year, Royal Mail achieved only 77% and 92.5%, respectively.
Ofcom has approved Royal Mail’s proposal to discontinue Saturday deliveries for second-class letters and transition to alternate weekday services, to be implemented in the near future. Nonetheless, Royal Mail is obligated by its universal service mandate to maintain Monday to Saturday deliveries for first-class post and meet the three-day delivery target for second-class letters.
Martin Seidenberg, the CEO of International Distribution Services (IDS), acknowledged the substantial challenge ahead, extending well into 2026. He affirmed the company’s dedication to meticulous planning to ensure consistent service quality for customers.
Despite reporting underlying earnings of £12 million for the year ending March 31, Royal Mail remained in the red, with underlying operating losses of £8 million when factoring in redundancy costs.
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