Citizens Advice: Royal Mail’s unfair price hikes are making post less affordable

More than two thirds of people (68%) think the increase in the price of a 1st class stamp over the past five years is unfair, according to new research by Citizens Advice.

From today, a 1st class stamp will cost consumers £1.70, more than double the amount it did in 2020 (76p). Despite Royal Mail failing to meet any annual delivery targets in the past five years, the cost has risen eight times to the inflation-busting price it sits at today.

While an estimated 35 million people think the rise in price is unfair, millions of consumers admitted they would find it difficult to afford stamps, or simply not be able to afford them.

One in three (33%) – the equivalent of around 15.8m people – said they would struggle to afford a book of eight 1st class stamps, now costing £13.60. While 7.2m (16%) said they would struggle to afford a single 1st class stamp.

Almost a quarter (22%) – around 10m people – said they’d struggle to afford a book of eight 2nd class stamps, now costing almost £7, with 3.9m (9%) saying they would struggle to afford a single 2nd class stamp.

The charity’s research shows delivery reliability is still a concern among consumers, as a third (32%) said they’d used a premium product, as opposed to a basic 1st or 2nd class stamp, to make sure an important letter or card arrived on time.

The regulator Ofcom is consulting on the Universal Service Obligation (USO) held by Royal Mail, which could see 2nd class letter deliveries reduced from six days a week to alternate weekdays.

Almost a third (29%) of people said they would like Royal Mail to keep delivering 2nd class letters six days a week. More than a third (37%) said they could accept the reduction to alternate weekdays, but only if the company meets its delivery targets.

Ofcom is also considering relaxing Royal Mail’s annual delivery targets. This would mean 90% of 1st class mail would have to be delivered next-day, instead of the current 93% target. Under the plans, 95% of 2nd class mail would need to be delivered within three days, instead of 98.5%, as it stands currently.

Millions of people still rely on Royal Mail – 86% said they’ve received an important letter or document in the post in the last six months and half (50%) have sent one.

Previous research by Citizens Advice shows that every year, millions of people face post delays. Over Christmas, an estimated 10.7m were hit with delays, with 3.4m of those missing vital letters for health appointments, bills, legal documents and fines.

Tom MacInnes, Director of Policy at Citizens Advice, said: “Royal Mail’s unfair price hikes are making post less affordable, and will hit low-income households and older people the hardest. People from these groups are more likely to be digitally-excluded and rely on mail.

“These price increases are worsened by the fact people simply can’t rely on their 1st or 2nd class mail being delivered on time – proven by Royal Mail’s failure to meet any annual delivery targets for half a decade.

“Ofcom must act. The regulator is considering slashing deliveries and relaxing targets, but these moves must go hand-in-hand with a curb on price increases. Otherwise, Royal Mail has no incentive, as a monopoly provider, to deliver the service consumers deserve.”