Sending a letter second class will cost 91p for another year under plans to keep a price cap in place – but with postage already costing almost £1, fewer letters and cards are being sent.
Regulator Ofcom has proposed extending the cap on second class stamp prices until March 2028, meaning the cost would remain flat in real terms while Royal Mail works to improve its delivery service.
The current cap, introduced in 2024 and linked to inflation, is due to expire in March.
Ofcom said it wanted to give Royal Mail more time to implement reforms before deciding on its longer-term approach to stamp prices.
But at 91p a letter, sending a birthday card, thank-you note or Christmas greeting is far from cheap for households watching every penny.
Ofcom said fewer letters are being sent, pushing up the cost of delivering each one, while urgent reforms are needed to protect the future of the universal postal service.
Fergal Farragher, policy director at Ofcom, said: “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.
“The number of letters being sent is declining and Royal Mail’s financial position is stark, which is why we reformed its universal service obligations last year.
Royal Mail stamp prices to rise from April – how to beat the hike… Full details here: https://t.co/LvRLuWOonN #MartinLewis
— Martin Lewis (@MartinSLewis) March 10, 2026
“But the company has been slow to implement this, which meant we weren’t able to consult on the future of stamp prices earlier this year, as originally planned.
“The company is now making some progress with its universal service reforms and improvements to its delivery performance, which has been unacceptable in recent years. However, we need a clearer picture of their impact before determining our long-term approach to stamp prices, which we’ll do next year.
“In the meantime, we’re proposing that second class stamp prices should stay flat in real terms for a further year, to make sure an affordable option remains available.”
Royal Mail says UK stamps are cheaper than in Europe
Royal Mail argued that its stamp prices remain low by international standards, despite the cost of sending letters rising as volumes fall.
A spokesperson said: “Ofcom’s announcement today recognises the substantial decline in letter volumes is threatening the sustainability of the universal postal service, frustratingly yet again it has delayed its decision on one of the key actions needed to address it.
“Letter volumes have declined by 70% since their peak, whilst addresses have grown by more than four million. This means that the cost of delivering every letter is increasing.
“At the same time, prices remain well below international comparisons at 91p for a second class stamp compared to an average £2.07 across Europe.
“We have proposed a stamp discount scheme that will better support 10 million low income customers, while helping to secure the future of the Universal Service for everyone across the UK.
“Quality of service is improving as we roll out our new Universal Service delivery model, and we remain on track with the Quality of Service Improvement Plan we set out in April.
“We will work constructively with Ofcom on options for ensuring Royal Mail has the pricing flexibility needed to ensure the UK’s postal service remains reliable, affordable and sustainable for the long term.”
Greeting card industry welcomes price cap extension
David Falkner, chief executive-elect of the Greeting Card Association, welcomed the proposal, pointing to the financial pressures facing consumers and small businesses.
He said: “This is a welcome step by Ofcom that recognises the significant cost pressures on consumers and small businesses as the Government focuses on measures to address the impact of cost-of-living challenges for families.
“Like Ofcom, we also acknowledge Royal Mail’s hard work implementing a new delivery model to drive standards and support their call for more progress.
“Our members are keen for them to succeed. They depend on a reliable and affordable service, and they acutely understand the importance of restoring the service back to the standards required by Ofcom.”
