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Money-saving expert Martin Lewis has advised customers to stock up on stamps before the cost goes up once more. Royal Mail is set for a price hike from April 7.
The impending changes will see the price of a standard first-class stamp climb from £1.65 to £1.70, and a large first-class stamp will soar from £2.60 to £3.15. A standard second-class stamp will jump from 85p to 87p, although a large second-class stamp will hold at £1.55.
Prices for other Royal Mail services such as “Signed For” and “Tracked” deliveries are also on the up from April 7. However, consumers can save cash by getting stamps before the rates increase, reports the Mirror.
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Martin said: “For years, every time stamps go up in price I’ve suggested people stock up and bulk-buy in advance, as provided the stamp doesn’t have a price on it and instead just says the postage class, it’s still valid after the rise.
“This has been an effective tactic, as a first-class letter stamp is now £1.65, soon rising to £1.70 – in 2012 it was just 60p. So while it’s not a huge saving this time, you still may as well stock up now.”
Notably, this isn’t the first increase. The price of first-class stamps rose twice last year, once in October and previously in April.
Royal Mail has cited a decrease in letter deliveries as the reason for their latest price increase, with Nick Landon, chief commercial officer at Royal Mail, stating: “We always consider price changes very carefully but the cost of delivering mail continues to increase. A complex and extensive network of trucks, planes and 85,000 posties is needed to ensure we can deliver across the country for just 87p.”
Wider issues facing the Post Office
The development follows Ofcom’s proposed reforms which include the discontinuation of second class letter deliveries on Saturdays, suggesting an alternate weekday service instead, while maintaining the first class post delivery from Monday to Saturday. The regulator highlighted a significant decline in letter posting over two decades, falling from 20 billion to just 6.6 billion today, with expectations for it to drop further to 4 billion per annum in the near future.
Ofcom has calculated that such a reduction in service could save Royal Mail a substantial amount of up to £425million. Still, the regulator underscored the need for improved services by Royal Mail, particularly since it’s been fined in excess of £16million in the past 18 months due to unsatisfactory performance and failure to meet delivery targets.
Additionally, Ofcom suggests adjustments to the requirements for timely mail delivery, proposing a reduction of the next-day delivery target for first class mail from 93% to 90%, and a shift from 98.5% to 95% for delivering second class mail within three days. Ofcom, the UK’s communications regulator, has initiated a consultation on possible changes to modernise the postal service to be more aligned with international and European markets.
Natalie Black, Ofcom Group Director for Networks and Communications, commented on the necessity of the alterations: “The world has changed – we’re sending a third of the letters we were twenty years ago. We need to reform the postal service to protect its future and ensure it delivers for the whole of the UK. But we’re safeguarding what matters most to people – First Class mail six days a week at the same price throughout the UK, and a price cap on Second Class stamps.”
Royal Mail’s Chief Executive Officer, Emma Gilthorpe, also weighed in on the issue, stating: “Ofcom has recognised the urgent need for change so that the future of the Universal Service can be protected for all. Our proposal was developed after speaking to thousands of people across the country and is designed to preserve what matters most for our customers – maintaining a one-price-goes-anywhere service to 32 million UK addresses and First Class deliveries six days a week.”
She continued: “As Ofcom’s analysis shows, it is no longer financially sustainable to maintain a network built for 20 billion letters when we are now only delivering 6.7 billion. Reform is crucial to support a modern, sustainable, and reliable postal service for our customers, our company and our people.”
The final decision is slated for release this summer.
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