The UK's communications regulator, Ofcom, has unveiled radical new proposals that could see millions of people on state benefits receive free or heavily discounted postage stamps.
Support for Struggling Households
This initiative is a direct response to the ongoing cost-of-living crisis, aiming to support households for whom soaring postal costs have become a significant financial burden. Over the past four years, the price of sending letters and parcels has climbed dramatically across the United Kingdom.
A first-class stamp now costs £1.70, having doubled from 85p since 2021. Meanwhile, a second-class stamp has risen from 66p to its current price of 87p.
Ofcom stated, "A targeted discount scheme for vulnerable customers could provide more help to those who face the greatest challenges in affording to send letters." The regulator identified that benefit claimants, those with serious medical conditions, and people unable to leave home without assistance are most likely to struggle with these costs.
How the New Social Tariff Would Work
The proposed 'social tariff' scheme would function similarly to existing discounts in the telecoms sector, where individuals claiming benefits like Universal Credit or Pension Credit can access cheaper broadband and mobile deals.
According to the proposals, one option being considered would provide eligible customers with a set number of free first and second-class stamps every year. An alternative model could offer discounts of up to 50% on standard stamp prices.
The regulator is also exploring the introduction of 'freepost' addresses for essential public services such as the NHS and the Department for Work and Pensions. This would allow people to send certain official letters at no cost, though Ofcom has acknowledged this approach 'may be too narrow' to help everyone in need.
Potential Ripple Effects and Price Changes
To fund this support scheme, Royal Mail would likely increase stamp prices for customers and businesses not eligible for the discounts. Ofcom explained the anticipated cost structure, noting, "Clearly there would be a cost to setting up and running a scheme, which it is anticipated would be borne by Royal Mail and recovered through its prices for people and businesses not eligible for the scheme."
The relentless price increases have changed consumer behaviour, with most people now buying books of stamps, which represents a higher upfront cost. Four first-class stamps now cost £6.80, while a book of eight sets you back £13.60.
Ofcom highlighted that postal price rises are a global trend, citing costs of £2.61 in Italy and £4.55 in Denmark. Despite this, the average person in Britain spends only around £2.60 per month on postal services, including parcels. However, two-thirds of people report sending fewer letters due to the high prices.
While Ofcom favours a system linked to benefit claims, it conceded that benefits are "not a perfect indicator of facing affordability issues." The regulator is expected to publish its next update on these proposals by March 2026, determining whether any of these ideas will progress.
