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The planned cap on stamp prices is the latest blow to Royal Mail, which is trying to shift its focus to parcels as demand for letters continues to decline.
Earlier this month, the Government blocked the company’s plans to axe Saturday letter deliveries. The move threatens to drive the price of first class stamps even higher.
Royal Mail has also been left reeling by a cyber attack that left it unable to deliver international mail earlier this year and has been embroiled in a lengthy row with unions over pay and conditions. It led to a walkout by thousands of postal workers.
The company is already at risk of a hefty fine from Ofcom after more than one in four first class letters it delivered last year were late – its worst performance on record.
Recent research by the regulator showed almost 70pc of people prefer to send emails than letters, while roughly a fifth reported sending fewer letters, greeting cards, invitations and postcards than they did two years ago. ONS figures for 2020/2021 showed that the average household spent 90p per week on all postal services, representing less than 0.2pc of total weekly expenditure.
Marina Gibbs, director of post at Ofcom, said: “We might not be sending as many letters as we used to, but when we do, it can be an important way for family and friends to keep in touch.
“So we’re proposing that stamp prices for second class letters should only rise by inflation, and no more, to make sure there’s always an affordable option available to everyone.”
Ofcom is now consulting on its proposals, which will set prices from April 2024 to March 2029. Royal Mail has been contacted for comment.
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