Royal Mail to increase price of first class stamps by 30p

Royal Mail has announced the price of first class stamps will rise by 30p. It means from October 7 a stamp will cost £1.65 - up 22 per cent from the current £1.35.

Second class stamps will remain at 85p. It will be the second price increase in just over six months after 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 had to increase the price due to the “urgent” financial challenge it faces. Royal Mail 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 has led to increases - although they have sought to keep them as low as possible.

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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, which are still being considered, second class deliveries would not be made on Saturdays and would only be on alternate weekdays. 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. It aims to publish a consultation in early 2025 and make a decision in the summer of next year.

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