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Royal Mail will increase the price of stamps next month as it said the challenging environment means it is likely to be loss-making by 2020/21.
From 23 March, the price of a 1st class stamp will increase by 6p to 76p. For a 2nd class standard letter, the price will rise 4p to 65p.
Royal Mail confirmed it will cost £1.15 to send a 1st class large letter, a 9p increase, while for a 2nd class large letter, senders will pay 88p – a 5p increase.
It said it understands many companies and households are finding it hard in the current economic environment which is why it has considered prices changing “very carefully” and to “minimise any impact on customers”.
However, it said it is operating in a challenging business environment, adding that “the likelihood has increased that Royal Mail in the UK will be loss making in 2020/21”.
The service said it wants to invest £1.8bn in the UK as part of its turnaround and sustainability plan.
Stephen Agar, managing director of letters at Royal Mail, said: “We are operating in a tough market at present, under the threat of making a loss by 2021. These price increases will help us maintain the quality of service that is expected by our customers, while supporting the Universal Service.”
A spokesperson added that Royal Mail’s stamp prices are “amongst the best value in Europe” compared to other postal operators. The European average for a 1st class letters (0-100g) is £1.05.
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