Consumer Scotland Head of Post Grace Remmington said:
“This review comes at a time when many consumers are facing sustained cost of living pressures, and the affordability of essential services, including postal services, is under increasing strain.
“Postal services play a vital role in linking consumers with the wider economy and they remain a critical means of communication, particularly for receiving mail such as medical appointment letters, social security information, and utility bills. For those who are digitally excluded or live in rural areas, reliable and affordable postal services are essential.
“However, the cost of postal services has risen sharply in recent years with increases in the price of both First and Second Class stamps. These increases have come at a time when the Royal Mail has repeatedly failed to meet its delivery targets.
“In addition, recent changes to the Universal Service Obligation have reduced service levels, including the move to alternate weekday deliveries for Second Class mail.
“The review proposes a targeted scheme to ensure people on low incomes can continue to access the postal service, but at the same time Ofcom has suggested it may consider changing or removing the current safeguard cap on the price of Second Class letters which provides important protections for all consumers.
“Lessons from other regulated markets suggest it is challenging to target support effectively to those on low incomes and we would be concerned about the affordability impact for consumers of any relaxation of the current Second Class cap. Any scheme to support low income consumers should be in addition to the Second Class cap and not a replacement.
“We will be responding to Ofcom on these points to ensure the consumer voice is heard in the review.”
Background
Ofcom Call for Input on pricing and affordability
The affordability of the Universal Postal Service
The price of a First Class stamp has increased by 124% between 2020 and 2025 from 76p to £1.70 and Second Class stamps have risen by 34%, from 65p to 87p over the same period.
Research from Citizens Advice shows that one in three people (33%) now struggle to afford a book of eight First Class stamps, which costs £13.60, and 16% say they struggle to afford even a single stamp.