Hi Benson,
To be honest, I cannot see that writing 'Private and confidential' will make any difference at all (I would expect it to be ignored)! Someone has to open and scan the forms and this is done by clerical staff rather than the assessors or Decision Makers. Postal workers will be under the same duty of confidentiality as the call centre workers etc.
Nothing on this board constitutes legal advice - always consult a professional about specific problems