Ofcom is reviewing how it regulates the affordability and pricing of Royal Mail's universal service. On 16 October 2026 it proposed keeping the retail price cap on Second Class letters at its current level for one further year, to 31 March 2028; the cap would otherwise expire in March 2027. Under the cap the maximum price across the basket rises no faster than CPI inflation. Ofcom says it wants more evidence on Royal Mail's new operating model before setting a long-term approach, plans to consult on that in Q1 2027/28 and expects to decide in Q3 2027/28. The consultation closes on 27 November 2026.
Key dates
- Done16 Oct 2026
Ofcom publishes consultation on extending the Second Class cap by one year Ofcom
- 27 Nov 2026
Consultation on the interim review closes at 5pm Ofcom
- 1 Apr 2027
Ofcom plans to consult on a long-term approach to universal service and access pricing (Q1 2027/28, quarter only) Ofcom
- 1 Oct 2027
Ofcom expects to decide on the long-term approach (Q3 2027/28, quarter only) Ofcom
Every date of this rule, with what it means for a parcel and what to prepare. If a date moves, your calendar moves with it.
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Who it hits
What to prepare
- Respond to the consultation by 27 November 2026 if your customers rely on Second Class letters or large letters.
- Separate letter and parcel lines in postal budgets for 2027-28, as the two can now move in opposite directions.
Our reading
Sources
- Call for input: Review of postal regulation, pricing and affordability · Ofcom · 2025-11-04
- Ofcom's Plan of Work 2026/27 (statement) · Ofcom · 2026
- Royal Mail postage rates 2026: franking prices (October update) · Mailcoms · 2026-09-07
- Consultation: Interim review of Second Class cap · Ofcom · 2026-10-16
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Information, not legal advice. Dates come from official texts or quality legal and trade press, and slip often: always check the current text before acting. Back to the full radar.