Royal Mail: These prices changes are necessary
Royal Mail has announced that from 4th April 2022, the price of a 1st Class stamp will increase by 10p to 95p and the price of a 2nd Class stamp will increase by 2p to 68p.
Royal Mail has considered these pricing changes very carefully in light of the long term structural decline in letter usage and rising inflation. Letter volumes have declined by more than 60% since their peak in 2004/5, and around 20% since the start of the pandemic.
Overall, these changes are broadly in line with inflation and are necessary to ensure the one-price-goes-anywhere Universal Service remains sustainable. The Universal Service Obligation (USO) requires Royal Mail to deliver letters to 31 million home and business addresses across the UK six days a week at the same price.
Nick Landon, Chief Commercial Officer at Royal Mail said: “We understand that many companies and households are finding it hard in the current economic environment, and we will always keep our prices as affordable as possible.
“Whilst the number of letters our postmen and women deliver has declined from around 20 billion a year to around 7 billion since 2004/5, the number of addresses they have to deliver to has grown by around 3.5 million in the same period. We need to carefully balance our pricing against declining letter volumes and increasing costs of delivering to a growing number of addresses six days a week.
“As customer needs change and we see a greater shift from letters to parcels, it is vital that the Universal Service adapts to stay relevant and sustainable. These prices changes are necessary to ensure we can continue to maintain and invest in the one-price-goes-anywhere Universal Service for future generations.”
Royal Mail’s stamp prices remain among the best value in Europe compared to other postal operators. Royal Mail research shows that the European average price for 1st Class letters (0-100g) is £1.36.
