Royal Mail to increase first and second class stamp prices within weeks

STAMP UP: The price increase will come into effect from April 3, this year (Photo by PA)

By Ruby Flanagan

For the first time, the cost of a first class stamp is set to break the £1 barrier and rise to £1.10, early next month.

Royal Mail has announced that starting April 3, the cost of a first-class stamp would rise by 15p to £1.10. The cost of a second-class stamp is also increasing, from 68p to 75p.

The news of the price increase comes at a time when inflation levels in the UK are already at their highest in over a decade, standing at 10.1 per cent. This means that the 16 per cent increase in stamp prices is significantly above current inflation levels and will come as a blow to many people who rely on the postal service.

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According to the Mirror, the cash-strapped delivery giant announced that it had raised prices after “careful consideration”, citing a 25 per cent decline in letter volumes due to the Covid-19 pandemic. Additionally, it stated that the price hike was crucial to maintain the sustainability of its Universal Service agreement, which guarantees nationwide delivery at a uniform rate.

Commenting on the price rise, Nick Landon, chief commercial officer at Royal Mail said: “We have to carefully balance our pricing against a continued decline in letter volumes and the increasing costs of delivering letters six days a week to an ever-growing number of addresses across the country.

“We are seeing a fundamental change in consumer needs with a greater shift in demand from letters to parcels. It is vital that the Universal Service adapts and stays both relevant and sustainable.

“We need to make these price changes to ensure we can continue to maintain and invest in the one-price-goes-anywhere Universal Service for years to come.”

If you affix a first-class stamp to your letter, it is expected to arrive at its destination on the following day. On the other hand, if you use a second-class stamp, delivery typically takes two to three business days, including Saturday.

In response to the news, Citizens Advice stated that the price increases for first-class stamps represent a 64 per cent increase over the previous five years. Nearly one in five individuals already struggle to pay for second-class postage stamps.

Matthew Upton, director of policy at Citizens Advice, said the “record breaking” price rises “couldn’t be coming at a worse time for consumers”.  Citizens Advice has urged Ofcom to “hold Royal Mail to account,” claiming the regulator is currently allowing the company to “get away” with raising prices and missing deadlines. Matthew added: “Enough is enough, it’s time for the regulator to act.”

Do you think this price hike will result in a further drop in letter volumes? Let us know in the comments.

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