In a statement released today (6 September), Royal Mail said that from 7 October 2024, the price of First Class stamps will rise to £1.65. The price of Second Class stamps will remain unchanged at 85p.
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 Universal Service.
It added the new price of First and Second Class stamps remained below European average prices of £1.73 for First Class and £1.33 for Second Class.
“Letter volumes have fallen from 20 billion in 2004/5 to around 6.7 billion a year in 2023/4,” the postal operator stated.
“As a result, the average household now receives just four letters per week, compared to 14 per week in 2004/5. 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.”
It said the Universal Service, which requires Royal Mail to deliver letters to all 32 million UK addresses six days a week, was in need of “urgent reform”, as its minimum requirements have not changed for over 20 years.
Royal Mail chief commercial officer Nick Landon 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.”
Reacting to the news, Phil Hutchison, SVP and MD, Mail at Quadient, said: “Royal Mail is raising stamp prices even though it is not meeting service obligations. Looking to the future of the postal service, Ofcom needs to ensure that Royal Mail upholds a postal service that works for everybody.
“Looking at Ofcom’s latest proposals, there is a risk of a postcode lottery while changes to delivery services are rolled out. Some areas would receive post six days a week, while others would only have deliveries two or three times a week. During this transition period, Ofcom needs to keep consumers and businesses front of mind, as they inevitably ask what’s in it for them.”
In April this year the price of First Class stamps had already increased by 10p to £1.35 while the price of Second Class stamps increased by 10p to 85p at the same time.
