Royal Mail rise price of stamps

Royal Mail today announced that the price of First and Second Class stamps for standard letters are to rise. Letters weighing up to 100g would rise by 2p, to 41p and 32p respectively, from 6 April 2010. The prices for ordinary meter and account mail, largely sent by small businesses, will not increase and will remain at 36p and 25p respectively for standard letters weighing up to 100g.

The increases to stamp prices affect only around 12% of the mail sent in the UK and will add around 3p per week to the average UK household’s weekly 50p expenditure on postage. The changes are in line with the pricing regime set by the regulator, Postcomm, and reflect the continuing financial losses made by Royal Mail in collecting and delivering stamped mail – some £250m in 2008-09.

After the new prices take effect, Royal Mail’s stamp prices will still be among the lowest in Europe – the average cost of sending a 100g item by First Class post or equivalent in Europe is now 82p, twice the new UK price.

Alex Smith, Royal Mail’s commercial and strategy Director, said: “Stamp prices remain affordable and represent excellent value for money – Royal Mail continues to  offer consumers a more extensive, to-the-door, six-days-a-week service than many European countries and does so at a lower price than most other operators.

“Small businesses that depend on Royal Mail’s services to fulfil their customers’ orders and to grow their businesses will be helped by our decision to hold prices for ordinary meter and account mail at today’s levels.”

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