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Royal Mail hikes price of first class stamp again

06 Sep 2024 3 minute read
Photo Victoria Jones PAWire/PA Images

Royal Mail has announced a 30p increase in the price of a first class stamp, explaining the “urgent” financial challenge it faces.

The price of first class stamps will increase to £1.65 on October 7 while second class stamps will remain at 85p.

First class stamp prices increased by 10p to £1.35 in April and by 10p to 85p for second class.

Royal Mail said it has sought to keep price increases as low as possible in the face of declining letter volumes, inflationary pressures and the costs associated with maintaining the so-called Universal Service Obligation (USO) under which deliveries have to be made six days a week.

Saturday deliveries

Postal regulator Ofcom said this week that Royal Mail could be allowed to drop Saturday deliveries for second class letters under an overhaul of the service.

Under plans being considered, second class deliveries would not be made on Saturdays and would only be on alternate weekdays, but delivery times would remain unchanged at up to three working days.

Ofcom said no decision had been made and it continues to review the changes, with aims to publish a consultation in early 2025 and make a decision in the summer of next year.

Royal Mail said letter volumes have fallen from 20 billion in 2004/5 to around 6.7 billion a year in 2023/4, so the average household now receives four letters a week, compared to 14 a decade ago.

The number of addresses Royal Mail must deliver to has risen by four million in the same period meaning the cost of each delivery continues to rise.

Urgent reform

Royal Mail said the universal service is in need of urgent reform, adding: “The minimum requirements of the universal service haven’t changed for over 20 years despite major changes to how people communicate.

“We have no certainty on regulatory reform and the rate of letter decline and ongoing losses means that Royal Mail has had to take the necessary steps within its power to address the very real and urgent financial sustainability challenge the universal service faces right now.

Nick Landon, Royal Mail’s chief commercial officer, 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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Welsh Patriot
Welsh Patriot
28 days ago

Not sure who even bothers posting letters anymore?
Trouble is as the number of letters shrinks the cost to deliver each one goes up.
At some point, they might just have to stop.

A few years ago I disconnected my landline and go rid of the handset, only time it rang was scam calls.
I might have to do the same with my letterbox, as I only ever get junk mail through it these days.

John Ellis
John Ellis
27 days ago
Reply to  Welsh Patriot

I think you’ve summed it up: in the era of the text and the e-mail, the practical need for the historic postal service has diminished greatly, and will surely continue to do so. I send far fewer letters than I did fifty – or even thirty – years ago, for that very reason. Exactly the same with telephone landlines: if you carry a mobile phone with you at all times, a landline becomes redundant. Speaking personally, I’ve stuck with my landline and I prefer it to my mobile because the sound quality’s better – and … well … in part… Read more »

Frank
Frank
28 days ago

With the advent of emails and text messages one would think that the Post Office would be decreasing prices to compete. We can buy a box of a dozen Christmas cards for about £1.99, just under 20p each, but to send one will now be 85p or £1.65. We used to send out dozens of cards but now we have almost stopped and the ones we do send are delivered personally on foot. If everyone does the same that’s a huge loss for the P.O. How much do they pay the CEO for not realising this?

Jack
Jack
28 days ago
Reply to  Frank

THE CEO knows it but the politicians cause the problem.

Jack
Jack
28 days ago

The problem for Royal Mail is cost of delivery for each item. By law they must deliver post 6 days a week. Ludicrous given how little mail is sent. If RM were allowed to deliver post every second day they could get rid of half the posties who deliver mail. Or only employ posties for half a week – massive labour saving for a company that loses something like a £1 for every 1st class letter sent.

RM is now a private enterprise but the ompulsory 6 day a week delivery stops the company working like a commercial enterprise.

hdavies15
hdavies15
28 days ago
Reply to  Jack

Sooner they flog it off to that Czech bloke the better as its traditional letter business is becoming more irrelevant with each passing year. Online shopping keeps the parcel delivery market buoyant but is Royal Mail competitive in that market segment ?

Ap Kenneth
Ap Kenneth
27 days ago
Reply to  Jack

“Get rid of posties” – nice attitude towards hard working people.

Valerie Matthews
Valerie Matthews
27 days ago

They are determined to wrack what little postal service is left. Christmas cards costing less than the postage? Why bother !

Ap Kenneth
Ap Kenneth
27 days ago

As the price to send each letter/card rockets the number sent shrinks downwards like a lead baloon. Could be a correlation as texts have been around for years and since being privatised the owners seem to have been desperate to destroy and rid themselves of the letters side of the business.

Richard Davies
Richard Davies
27 days ago

It should never have been privatised and, as it has the universal service obligation, it shouldn’t be subject to competition from other companies!

Jeff
Jeff
27 days ago

Privatisation doing well again then. What do we own in the UK anymore? Apart from the debt.

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