Ofcom blocks Royal Mail from hiking second-class stamp prices beyond inflation until 2028 over delivery failures

Royal Mail has been banned from raising second-class stamp prices above inflation until March 2028 after Ofcom extended its price cap, citing "unacceptable" delivery performance. The 91p second-class stamp may still increase, but any rise must track the consumer prices index. Ofcom's Fergal Farragher said Royal Mail's financial position was "stark" but that the company had been "slow to implement" reforms.

Over three years, Ofcom has fined Royal Mail more than £37 million for missing delivery targets, with only 85% of first-class mail arriving next day against a 90% target.

Stamp prices have risen seven times in four years, and Royal Mail's union warned this week the service will be "on the brink of collapse" with around 400 postal workers leaving every week.

Citizens Advice urged Ofcom to bring first-class stamps under a price cap as well; they currently cost £1.80 and carry no equivalent restriction.