Consumer Scotland is urging regulator Ofcom not to scrap the current price cap on Second-Class stamps amid proposals that could see it weakened or removed.
Ofcom is currently reviewing the affordability of postal services and has proposed a new targeted scheme to ensure people on low incomes can continue to access the postal service.
However, at the same time Ofcom is consulting on options to change or remove the current safeguard cap on the price of Second Class letters, which provides important protections for all consumers.
While Consumer Scotland supports the potential of targeted discount schemes for low-income consumers, it recommends that these operate as additional protections and not as a replacement for the existing safeguard cap.
The price of a First Class stamp - which is not protected by a cap - increased by 124% between 2020 and 2025 from 76p to £1.70. Second Class stamps have risen by 34% over the same period from 65p to 87p.
Postal services continue to play a critical role in connecting consumers across Scotland to the wider economy and essential public services.
Consumer Scotland research has shown that for many households affordable and dependable postal services are essential for receiving important communications such as medical appointments, benefits information, and utility bills. Small businesses also rely heavily on affordable postage.
In its response to Ofcom’s pricing and affordability work Consumer Scotland has recommended the regulator:
- Commit to maintaining the safeguard cap as an effective price control mechanism for Second-Class letters, protecting all consumers and ensuring efficiency, fairness and accountability
- Ensure any new targeted discount scheme is well-publicised and includes offline access for digitally excluded consumers
- Explain how any changes will improve quality of service, linking affordability proposals to performance outcomes
Consumer Scotland Head of Post Grace Remmington said:
“The safeguard cap on Second-Class stamps is a cornerstone of affordability in the postal market. Removing or weakening this protection would risk leaving many consumers and small businesses facing cost increases.
“We welcome the exploration of targeted discount schemes for low-income consumers, but the existing cap on Second-Class stamps should remain in place to ensure postal services remain accessible to all.”
Background
The affordability of the Universal Postal Service
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.
Consumer Scotland is the statutory advocacy body for consumers in Scotland. Part of its funding is for advocacy in the postal sector.