Ofcom announced a proposal to keep the price cap on second-class stamps at 91p for an additional year, holding the cost flat in real terms until March 2028. This move maintains an affordable postal option for consumers and small businesses. It also supports Royal Mail as the company works through critical universal service reforms and seeks to lift delivery standards that the regulator deemed unacceptable in recent years.
Background on the Second-Class Stamp Cap
The existing price cap links stamp price rises to inflation. It was originally introduced in 2024 and was scheduled to expire. Under Ofcom’s new proposal, the safeguard cap across second-class letter products will continue to rise no faster than inflation, as measured by the Consumer Prices Index (CPI). This ensures stability for everyday users approaching peak postal seasons.
Fergal Farragher, policy director at Ofcom, explained the reasoning behind the interim decision:
To secure the long-term future of our postal service for consumers, we can’t look at affordability, sustainability or reliability in isolation. These are interconnected challenges that have to be considered together.
Royal Mail Reforms and Delivery Performance
The regulatory pause comes as Royal Mail rolls out operational changes following updates introduced in July 2025. These modifications gave the company greater operational flexibility in managing letter deliveries amid a continuous, long-term decline in letter volumes.
Farragher noted that because Royal Mail’s rollout of reforms has been gradual, the regulator could not consult on future multi-year stamp pricing strategies earlier in the year as originally planned. Ofcom stated that it requires a clearer evidence base regarding how these operational shifts impact both finances and service reliability before establishing a long-term pricing framework.
Industry stakeholders, including the Greeting Card Association (GCA), welcomed the proposal. David Falkner, GCA CEO-elect, noted that the certainty provides vital peace of mind for families and small businesses relying on affordable post during high-demand periods.
Next Steps and Future Consultations
Ofcom has launched a formal public consultation on the interim review. Stakeholders, consumer groups, and businesses have until late November to submit their responses through the online consultation portal.
Following this interim phase, Ofcom plans to consult on a comprehensive, long-term approach to universal service and access pricing in early 2027, with a final decision expected later that year. Until then, the 91p second-class stamp remains protected, ensuring continuity for millions of households across the UK.
Frequently Asked Questions
What is the proposed price cap for second-class stamps?
Ofcom proposed keeping the second-class stamp price cap at 91p, holding it flat in real terms until March 2028.
Why is Ofcom extending the current stamp price cap?
The extension gives Royal Mail time to implement universal service reforms and improve delivery performance. It also gives regulators sufficient time to evaluate the impact of these changes before setting long-term pricing strategies.
How does inflation affect the second-class stamp price?
The safeguard cap dictates that second-class stamp prices cannot rise faster than the rate of inflation, as measured by the Consumer Prices Index (CPI).
When will Ofcom decide on long-term postal pricing?
Following the current interim consultation, Ofcom plans to launch a wider consultation on its long-term approach to universal service and pricing in early 2027.
How can stakeholders respond to Ofcom’s proposal?
Interested parties, businesses, and consumers can submit feedback on the interim review via Ofcom’s online response form before the consultation closes.
