Second class stamp price capped until 2028 as Royal Mail reforms

Summarised from 2 outlets · Updated 16 Oct, 13:33 · Archive

Ofcom will cap second class stamp prices to inflation for another year until March 2028.

Ofcom has extended its price cap on second class stamps until March 2028, with the cost remaining pegged to inflation. The current 91p second class stamp will remain flat in real terms under the new proposals. The original cap was set in 2024 and had been due to expire in March 2027.

The extension comes as Royal Mail implements reforms to its universal service following what Ofcom described as 'unacceptable' delivery performance. Ofcom has fined Royal Mail more than £37 million in the last three years for missing delivery targets. Latest results show 85 per cent of first class mail was delivered the next working day, falling short of the 90 per cent target.

Royal Mail has blamed the missed targets on a massive drop in letter volumes, high staff sickness levels and ongoing structural changes. The company has increased stamp prices seven times in four years. Ofcom's policy director Fergal Farragher said the regulator cannot look at affordability, sustainability and reliability in isolation, describing them as 'interconnected challenges'.

How it is being reported

• Second class postage stamp price rise capped for a year as Royal Mail tackles delivery targetsIt comes as Royal Mail bids to reform to its service as part of wider measures to battle what Ofcom described as 'unacceptable' delivery performanceThe Mirror · 16 Oct, 13:10
• Second class stamp price to be capped until 2028 while Royal Mail addresses 'unacceptable' performanceRegulator Ofcom will cap price for another year - but Royal Mail argues that it needs to hike prices to battle higher costs.This is Money · 16 Oct, 12:00

In this story: Ofcom · Royal Mail

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