Second-class stamps will be pegged to inflation until at least 2029, regulator Ofcom proposed today in what it said was an attempt to keep letters affordable.
Ofcom said it cannot rely on competition to ensure prices remain affordable so has proposed that on average second class letter prices should rise by no more than inflation (CPI) from today’s prices.
Royal Mail is required to deliver letters six days a week and parcels five days a week to every address in the UK at "an affordable and uniform price" under its universal postal service provider obligation.
To make this service affordable and to allow Royal Mail to recover its costs, Ofcom said it periodically reviews whether stamp prices should be capped.
The last cap was set in 2019 for five years with the new proposal to run from April 2024 to March 2029.
Second-class stamps rose by 7p to 75p on 3 April.
A consultation period runs until 1 September 2023.
Royal Mail is owned by International Distribution Services.