Benefits claimants could get their CHRISTMAS CARD stamps subsidised under bizarre overhaul

Benefits claimants could be given free or discounted postage stamps under plans being considered by the mail regulator.

Research commissioned by Ofcom has suggested giving those on welfare subsidised first and second class postage as part of a potential ‘social tariff’ scheme.

Other proposals include a ‘freepost’ service for those on low incomes to send letters to organisations such as the NHS, Department for Work and Pensions, or HMRC.

The plans were drawn up by a consultancy firm as part of efforts to ensure affordability for Royal Mail services.

Earlier this year, Ofcom allowed Royal Mail to scrap second class letter deliveries on Saturdays and change the service to every other weekday to help cut running costs.

But, as part of the changes to its universal service obligations, the regulator launched a review of Royal Mail’s pricing and affordability to consider Britons’ concerns about rising stamp prices.

Since 2022, Royal Mail has hiked the cost of a first-class stamp from 85p to £1.70.

In the research commissioned by Ofcom, it was highlighted how other sectors such as the telecoms industry are required to offer lower-cost services.

For example, there is an obligation to offer special tariffs for those on low incomes or with special needs, while some mobile phone providers offer ‘social tariffs’ on a voluntary basis for eligible customers.

Under a free stamps scheme outlined in the Ofcom-commissioned research, it was suggested people on low incomes who receive certain benefits could be provided with eight second class stamps and five first class stamps per year.

There were no suggested restrictions on what the stamps could be used for under this scheme, meaning it could allow benefit claimants to send their Christmas cards for free.

An alternative suggested scheme would be modelled on an Australian scheme and see those on low incomes register before buying discounted stamps.

This would ‘enable Royal Mail to monitor usage more effectively’, the research said.

Royal Mail was not contacted or consulted in the preparation of the report. A spokesman for Royal Mail said: ‘We will fully engage with Ofcom on its review.

‘Royal Mail carefully considers prices and seeks to keep them as low as possible while balancing the increasing costs associated with delivering the Universal Service.

‘The delivery of mail involves a complex network of multiple modes of transport and around 80,000 posties to deliver a letter from the Scilly Isles to Shetland for just 87p.’