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Ofcom Explores Targeted Stamp Discounts for Benefit Claimants in Postal Affordability Review

The regulator has opened an early-stage call for evidence ahead of a formal consultation in early 2026 on options such as free or discounted stamps and limited freepost addresses.

Overview

  • Ofcom is inviting public views on postal affordability by 5 December 2025 before setting out formal proposals next year.
  • Options under consideration include a set allocation of free first- and second-class stamps, discounts of up to 50%, and freepost addresses for services like the DWP and NHS.
  • No decision has been taken, and Ofcom notes any scheme would carry costs likely recovered by Royal Mail through higher prices for non‑eligible customers.
  • Stamp prices have risen sharply over four years, with first class up from 85p to £1.70 and second class from 66p to 87p, with a safeguard cap on second-class prices in place until March 2027.
  • Royal Mail says it will fully engage with the review, following a £21 million fine for missing 2024/25 delivery targets and regulatory approval to end Saturday second-class deliveries.