Royal Mail criticised as first-class stamp price rises to £1.80 despite ‘failing service’ | Royal Mail

Royal Mail has been criticised for announcing another hike in the cost of first- and second-class stamps while providing what Citizens Advice described as a “failing service”.

From 7 April, the price of a first-class stamp will increase by 10p, or 6%, to £1.80. The cost of the second-class service is going up by 4p, or 5%, to 91p. Royal Mail blamed the need for price increases on the “continued rise in the cost of delivery for every letter”.

“We always consider price changes very carefully, balancing affordability with the rising cost of delivering mail,” said Richard Travers, its managing director of letters. “There are 70% fewer letters sent than 20 years ago,” added Travers. “In the meantime, the number of addresses we deliver to has increased by 4 million to 32 million across the UK.”

But Anne Pardoe, the head of policy at Citizens Advice, said the price of stamps “can’t be treated as a dial that is turned up without a clear justification for consumers, forcing people to dig deeper into their pockets for a failing service”.

In the autumn Ofcom fined Royal Mail £21m for missing its annual delivery targets. It was the third time the 509-year-old postal service had been fined by the watchdog.

“More than half a decade has gone by since the company met its delivery targets and people still face a gamble, with many uncertain if their important documents or letters, like medical appointments, will arrive on time,” said Pardoe.

Taking into account the new increases, the charity said that – at £1.80 – the price of a first-class stamp had risen 137% since 2020. Over the same period, a second-class stamp increased by 40%.

After last year’s £3.6bn takeover of Royal Mail’s owner by the Czech billionaire Daniel Křetínský, the communications regulator Ofcom gave it permission to loosen its universal service obligation (USO). As a result it is only required to deliver second-class post on alternate weekdays instead of six days a week.

Ofcom also lowered Royal Mail’s headline delivery targets as part of the changes to the USO, which mean that from next month it is only required to deliver 90% of first-class mail within one working day (instead of 93%), and 95% of second-class mail within three days (instead of 98.5%).

“Things only risk getting worse when cuts to delivery days and reduced performance targets come into full effect,” said Pardoe. “Against this backdrop, Ofcom simply cannot wave through these increases any longer. Higher prices must come with higher standards.”

Royal Mail delivered Christmas letters and parcels late to about 16 million people, according to research by Citizens Advice.