Warning as Royal Mail confirms price of first class stamp to rise

The Royal Mail has announced a significant 30p increase in the price of a first class stamp. They have said the move has been made in a response to “urgent” financial challenges.

The price rise comes into effect from From Monday, October 7 and means the price of a first class stamp will jump to £1.65. Second class stamps will remain at 85p, reports the Express.

Earlier this year, in April, prices for first class stamps rose by 10p to £1.35 and second class by 10p to 85p. Royal Mail claims it has tried to keep price rises to a minimum despite falling letter volumes, climbing inflation, and the costs of maintaining the Universal Service Obligation (USO), which requires deliveries six days a week.

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This week, Ofcom, the postal watchdog, said that Royal Mail could be allowed to stop Saturday deliveries for second class letters as part of major service reforms. Under the proposed changes, second class letters would not be delivered on Saturdays and would only come on alternate weekdays, though delivery times are expected to stay the same at up to three working days.

Ofcom has clarified that no decision has been reached yet and is still reviewing the changes, with plans to publish a consultation in early 2025. A final decision is expected on the proposal by 2026.

Speaking of the stamp price rise, Nick Landon, Chief Commercial Officer at Royal Mail, said: “We always consider price increases very carefully. However, when letter volumes have declined by two-thirds since their peak, the cost of delivering each letter inevitably increases. A complex and extensive network is needed to get every letter and parcel across the country for a single price – travelling on trucks, planes, ferries and in some cases drones before it reaches its final destination on foot.

“We are proud to deliver the universal service, but the financial cost is significant. The universal service must adapt to reflect changing customer preferences and increasing costs so that we can protect the one-price-goes anywhere service, now and in the future.”

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