1p rise likely on UK first-class stamps

An extra penny could be added to the price of a first- class stamp to help Royal Mail absorb increases in its pension deficit, said Postcomm, the regulator of the state-owned postal operator.

This would mean first class stamps would rise from 30p to 37p by 2010, according to the final version of proposed price controls published by Postcomm. The additional increase would be triggered if the Pounds 4.25bn pension deficit rose to more than Pounds 5.9bn.

The latest price proposals are due to take effect on April 3, when first-class stamps will increase to 32p.