Out of the loop: Mail redirection concessions are not delivering for consumers

Out of the loop: Mail redirection concessions are not delivering for consumers 439 KB

Moving home brings many changes, and a new address is an important one. Letters continue to carry significant personal correspondence, including communications from health services, creditors, government agencies and legal services. Mail redirections are therefore essential in ensuring these important letters and documents are not missed. They’re also vital in making sure personal details don’t get into the wrong hands. 

Citizens Advice has long recognised the importance of making mail redirections accessible to all and we’ve campaigned for a fairer and more affordable redirection service since 2018. 

In response, Royal Mail introduced a discounted scheme for those who might struggle to afford mail redirections in 2019. This was expanded to include people in receipt of any means-tested benefits in 2021. We welcomed this positive step towards ensuring the accessibility of redirections, offering access to vital communications and protection from fraud.

However, nearly five years on from these changes, our latest research finds critical gaps remain. It reveals that: 

• The discounted price for the recommended 12-month redirection remains unaffordable for many

• The vast majority of eligible consumers still don’t know they’re entitled to a discount

• Compared to the standard product, the application process for the discounted service is long-winded and complex

We call on Ofcom to consider the affordability of both Royal Mail’s standard and concessionary redirection schemes as part of their upcoming Affordability and Pricing review:

1. Ofcom should protect consumers from ongoing, above-inflation price rises by introducing price caps on standard and concessionary redirections.   

2. Ofcom should actively monitor the take-up of concessionary redirections and assess whether Royal Mail is doing enough to promote it. 

We call on Royal Mail to take the following steps to make sure their concessionary redirection scheme is supporting those it is intended to help:

1. Improve the discount for 12-month redirections to ensure effective fraud protection is a viable option for more consumers. 

2. Proactively alert eligible consumers to the discounted scheme via both online and offline channels 

3. Make the application process more accessible by offering both fully online and fully offline application options.