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The price of stamps is set to rise again, as the Royal Mail have warned ahead of another hike in the cost of living crisis which is plaguing Britain. There are plans in place to ramp up cost-cutting as a result of huge inflation, with the UK’s rate currently standing at between seven and nine per cent.
The Royal Mail said that they are facing “significant headwinds” from higher wage demands, surging energy and fuel costs in a grim update to customers. Only last month the price of first-class stamps rose by 10p to 95p, while second-class stamp prices went up 2p, to 68p.
But now the Royal Mail has said it will need to go further with cost savings, increasing its target to more than £350 million from around £290 million previously.
READ MORE: Cost of living: ‘I work two jobs, 60 hours a week to afford to live in London but told it’s not enough by the government’
The firm reported an eight per cent rise in underlying operating profits to £758 million for the year to the end of March. On a reported basis, pre-tax profits fell 8.8 per cent to £662 million.
Royal Mail said it hoped to meet earnings expectations for its UK business over the year ahead, if it can agree a pay deal with its union that is “broadly” in line with its current offer. Chief executive Simon Thompson told the PA news agency the group remains in “intense discussions” with the Communication Workers Union (CWU) as they look to agree on pay.
Mr Thompson said the firm was already seeing “some impact” of the cost-of-living crisis on parcel demand and a “fall away from peaks” during lockdowns when shops were shut. But its figures showed UK full-year parcel deliveries still rose 31 per cent against levels seen before the pandemic struck, while letter mailings were 18 per cent lower on a two-year comparison.
