Question to the Department for Business, Energy and Industrial Strategy:

To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment his Department has made of the impact on Royal Mail customers of (a) the price increase on Royal Mail stamps and (b) current stamps which will no longer be valid from January 2023.

As a private business, Royal Mail’s management sets the prices for its services. The Government does not have a role in Royal Mail’s day-to-day commercial or operational decisions. In setting its prices however, Royal Mail must work within the regulatory framework set by Ofcom, the independent regulator. This framework currently imposes price caps on certain second-class products.

In January 2021, Royal Mail raised the price of second-class standard letter stamps to the level of the cap, and it can now only raise prices for that product in line with CPI rates for the remainder of Ofcom’s current review period, ending in March 2024. Ofcom plans to begin work towards the end of this year on a review of the appropriate scope and level of the safeguard caps that should apply from April 2024.

The development of stamp products is also an operational matter for Royal Mail. Royal Mail has announced a ‘Swap Out’ scheme to exchange existing stamps for new barcoded versions which is set to open on 31 March 2022. Royal Mail will set out further details on the scheme in due course.