Royal Mail has declared an upcoming hike in stamp prices starting April 7.
The rate for a first class stamp is set to climb by 10p to £1.80, while a second class stamp will see a 4p increase to 91p. Back in 2016, the cost of a first class stamp was just 64p, showing a substantial 181% escalation over the past decade.
Attributing the price adjustments to the escalating delivery expenses amidst declining letter volumes and an expanding number of addresses, Royal Mail justified the decision.
However, scrutiny has intensified on the postal service for failing to meet delivery targets. The last time Royal Mail achieved its annual goal for timely first-class post delivery was in 2019-20.
For those who frequently mail letters, a cost-saving strategy before the price surge is bulk-purchasing stamps without denominations on them, indicating only the postage class.
Richard Travers, Royal Mail’s managing director of letters, emphasized the careful consideration of price adjustments to balance affordability with the increasing mail delivery costs. He noted that UK adults now spend an average of just £6.50 annually on stamps, with a 70% reduction in letter volumes compared to two decades ago, while the number of delivery addresses has surged to 32 million in the UK.
Regarding the delivery challenges, Anne Pardoe, head of policy at Citizens Advice, expressed concerns over Royal Mail’s failure to meet delivery targets and urged higher standards to accompany the price hikes based on the company’s doorstep performance.
Ofcom sanctioned Royal Mail last year to discontinue Saturday delivery of second class post and limit second class post delivery to alternate weekdays. Although this change is being tested in around 35 delivery offices, Royal Mail maintains a target for second class letters to reach recipients within three working days despite the reduced service.
In a significant corporate move, Czech billionaire Daniel Kretinsky’s EP Group acquired Royal Mail for £3.6 billion in June last year.
