Royal Mail to increase first class stamp prices next month - Check how much more you will be paying
This increase marks the fifth increase in less than three years
PA
Royal Mail has announced a significant increase in the price of first-class stamps, set to take effect on October 7.
The cost will rise by 30p, bringing the price to £1.65.
The postal service cites "very real and urgent" financial challenges as the reason for the hike.
The move comes as Royal Mail grapples with a sharp decline in letter volumes, which have fallen from 20 billion in 2004/05 to about 6.7 billion in 2023/24
Second-class stamps, however, will remain at 85p. This price is currently capped until 2029 to keep letter-sending affordable.
Nick Landon, Royal Mail's chief commercial officer, explained the reasoning behind the price increase and said: "We always consider price increases very carefully.
Royal Mail has agreed a takeover offer from Czech millionairePA"However, when letter volumes have declined by two-thirds since their peak, the cost of delivering each letter inevitably increases."
He continued: "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."
Royal Mail has faced multiple price increases in recent years.
In April, first-class stamp prices rose by 10p to £1.35, while second-class stamps increased to 85p. The company maintains that it has tried to keep price hikes as low as possible.
Royal Mail has called for reforms to its service terms, under which it is legally obliged to deliver letters six days per week, Monday to Saturday, and parcels Monday to Friday.
However, they argue that how people communicate has changed now as the average household now receives just four letters a week, compared to 14 a decade ago.
Postal regulator Ofcom has announced it will "assess" whether Royal Mail could be allowed to scrap second-class letter deliveries on Saturdays. This comes as part of a broader review of the universal postal service.
Ofcom is considering changes that would allow second-class deliveries only on alternate weekdays, whilst maintaining first-class deliveries six days a week.
The regulator aims to publish a consultation in early 2025, with a decision expected in the summer of that year.
Royal Mail has proposed reducing second-class letter deliveries to two or three days a week, potentially cutting nearly 1,000 jobs and saving £300million annually.
The company suggests changing the daily Monday-to-Saturday second-class service to "every other weekday".
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No final decision has been made on these potential changes. Ofcom continues to review the proposals, balancing service efficiency with public needs.
Lindsey Fussell, Ofcom’s group director for networks and communications, cited that users of the postal service will be at "the heart of the review".
She explained: "If we decide to propose changes to the universal service next year, we want to make sure we achieve the best outcome for consumers.
"So we’re now looking at whether we can get the universal service back on an even keel in a way that meets people’s needs.
"But this won’t be a free pass for Royal Mail – under any scenario, it must invest in its network, become more efficient and improve its service levels."