Royal Mail stamp price increases “inevitable”
From 7 October 2024, the price of First Class stamps will increase to £1.65 and the price of Second Class stamps will remain unchanged at 85p.
Royal Mail 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.
The new price of First and Second Class stamps remain 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. 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.
The Universal Service – which requires Royal Mail to deliver letters to all 32 million UK addresses six days a week – is in need of urgent reform. The minimum requirements of the Universal Service haven’t changed for over 20 years despite major changes to how people communicate. We have no certainty on regulatory reform and the rate of letter decline and ongoing losses means that Royal Mail has had to take the necessary steps within its power to address the very real and urgent financial sustainability challenge the Universal Service faces right now.
Nick Landon, Chief Commercial Officer at Royal Mail, 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.”
