The Royal Mail has issued a three-week warning to customers as the price of first-class stamps is set to pass £1 for the first time.

The delivery giant has revealed the cost of first-class stamps will rise by more than 10 per cent next month, from 95p to £1.10.

The cost of second-class stamps is also set to rise, with a 7p increase taking the price to 75p.

Royal Mail said the increases are needed to ensure that the universal service, which means any letter delivery costs the same irrespective of the distance, “remains sustainable”.

The Herald:

The group said it made the decision after witnessing a 25% decline in letter numbers since the pandemic, as well as higher cost inflation.

Royal Mail’s financial woes saw the company reveal plans last year for up to 6,000 redundancies, as it said it expected to fall to an annual loss of up to £450 million.

Royal Mail said it remains committed to the universal service but said that costs are increasing as “customer behaviours change”.

The business has however asked the Government to reduce its obligation to deliver letters to Britons six-days-a-week to five-days-a-week.

 

Nick Landon, chief commercial officer at Royal Mail said: “We appreciate that many businesses and households are facing a challenging economic environment and we are committed to keeping our prices affordable.

“Letters have declined by 25% compared to pre-pandemic.

“We have to carefully balance our pricing against a continued decline in letter volumes and the increasing costs of delivering letters six days a week to an ever-growing number of addresses across the country.

“We need to make these price changes to ensure we can continue to maintain and invest in the one-price-goes-anywhere universal service for years to come.”