How to save on Royal Mail stamps as first-class prices set to soar

STAMP OUT: These strategies can be particularly valuable as Christmas approaches, and parcel and card deliveries become more frequent (Image: Paul Gillis / Reach PLC)

Royal Mail has announced a 14 per cent increase in the price of first-class stamps, effective from October 2. This hike, which adds 15p to the cost, comes as the second increase in the same year, potentially impacting consumers’ budgets.

With the average Brit sending 74 parcels or letters annually, people are looking for ways to minimise the impact. With that in mind, address validation expert Jon Good from Hopewiser has come up with a strategy to save money by stocking up on stamps before the hike.

Why Royal Mail is increasing stamp costs
Royal Mail has attributed these price hikes to the ongoing cost of living crisis and the need to maintain the universal service obligation, which requires delivering letters to every UK address six days a week.

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How to beat the hike
To safeguard your postage budget from future inflation, consider buying and stockpiling stamps at the current price. These stamps will remain valid even after the price increase on October 2.

According to the Pitney Bowes Parcel Shipping Index, a UK adult sends 74 parcels a year approximately, amounting to an estimated minimum annual expenditure of £92.50 on stamps if purchased after October 2. By purchasing stamps before this inflation date, you could save at least £11.10 annually.

As long as your stamps are of the correct postage class, they will still be valid after the increase. Alternatively, for standard-sized letters, you can use less expensive second-class stamps, as their prices are not changing in October. These strategies can be particularly valuable as Christmas approaches, and parcel and card deliveries become more frequent.

Which stamps will cost more in October

• First-Class stamp, Standard Size Letter: Increasing from £1.10 to £1.25 (a 14 per cent increase or 15p hike)
• First-Class stamp, Large Letter: Increasing from £1.60 to £1.95 (a 22 per cent increase or 35p hike)
• Second-Class stamp, Large Letter: Increasing from £1.15 to £1.55 (a 40 per cent increase or 40p hike)

It’s noteworthy that while several stamp prices are rising by up to 40 per cent, the cost of standard second-class stamps will remain at 75p. Additionally, prices for Signed-For services are increasing, such as £2.75 for a first-class letter weighing 100g, Worldwide Next Day, and Two Day UK services at £12.45 for a 5kg parcel delivered in 24 hours and £11.95 for a 5kg parcel in 48 hours, respectively.

Save money through stamp swapping
Royal Mail discontinued regular non-barcoded stamps featuring Queen Elizabeth on July 31. If you still have these older stamps, you can exchange them for new barcoded versions. To do so, follow these steps:

1. Print out the ‘Stamp Swap Out’ or ‘Bulk Stamp Swap Out’ forms from the Royal Mail’s website.
2. Contact Royal Mail’s customer service team at 03457 740740 to request a form to be sent to you for free.
3. Visit your local post office, where you can pick up a form and envelope in person.

By swapping out your old stamps, you can use the proceeds to purchase stamps following the new price hike.

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