The price of posting standard first and second class letters in the UK has risen

For smaller items, first class stamps are now 38p instead of 36p and second class stamp now 27p instead of 24p. For larger items, first class has risen from 48p to 52p and second class from 40p to 42p.

Royal Mail says that stamped mail continues to run at a loss despite the increases – as much as GBP 178m in 2007. Royal Mail said that it is becoming increasingly difficult to maintain the subsidy on stamped mail whilst it was under so much pressure from competitors for business mail. Several key contracts have already been lost to rivals TNT Post.

Both Postwatch and Postcomm have said that it was essential that Royal Mail made greater efforts to be more efficient rather than rely on stamp prices to offset losses.