Could stamps soon become cheaper for people on benefits?

If you receive universal credit or other benefits, there could be good news coming your way - the cost of sending letters might soon go down.

The communications regulator Ofcom is reportedly considering introducing a postal social tariff, similar to the cheaper broadband and phone deals already available to people on low incomes.

This could mean discounted or even free postage when sending letters to certain organisations, such as the NHS or the Department for Work and Pensions (DWP).

Why a postal social tariff is being considered

The plan comes as stamp prices continue to climb.

• In April, the price of a first-class stamp rose by 5p to £1.70, double what it cost just four years ago, when it was 85p.
• A second-class stamp also increased by 2p to 87p.

While Ofcom currently caps the price of second-class stamps, keeping them at 87p until March 2027, it will review this cap in the near future.

Royal Mail says it’s facing higher costs because fewer people are sending letters, making it more expensive to deliver mail.

Ofcom hasn’t yet released the full details of how a postal social tariff would work, but it has asked Royal Mail to come up with proposals.

The regulator expects to publish its reform plans early next year.

What are social tariffs?

You might already be familiar with the idea of social tariffs from your phone, broadband, energy or water suppliers.

Social tariffs are discounted deals offered to people receiving benefits such as universal credit, pension credit, or other qualifying payments.

Here’s how social broadband and mobile tariffs work:

• Cheaper prices: packages usually cost between £10 and £20 a month.
• Good speeds: most offer superfast broadband (30 Mbit/s or faster), enough for streaming, video calls and online shopping.
• Low or no setup costs: switching to a social tariff is usually free or costs very little.
• Fixed prices: you won’t face mid-contract price hikes, what you agree to is what you pay.
• No exit fees: you can leave your contract early without penalty.

If your current broadband provider doesn’t offer a social tariff, you might even be able to switch to one that does without paying a cancellation fee.

Social tariffs for water bills

If you’re struggling to pay your water bill, many water suppliers also offer social tariffs for customers on low incomes or benefits.

Eligibility criteria and discounts vary between providers, so use our guide to check what your supplier offers.