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Royal Mail 1st Class Stamp price to rise 6p to 76p

By Chris Dawson February 21, 2020 - 2:04 pm

From the 23rd of March 2020, the price of a 1st Class stamp will increase by 6p to 76p and the price of a 2nd Class stamp will increase by 4p to 65p, the maximum allowed under the Ofcom price cap.
Royal Mail 1st Class Stamp Price 2010-2020

These price increases are significantly more than the 3p rise for both a 1st Class Stamp and 2nd Class Stamp a year ago and are the biggest single increase since 2012.

A 1st Class Stamp for a 100g large letter will rise by 9p from £1.06 to £1.15 and the cost for a 2nd Class Stamp for a 100g large letter will rise by 5p from 83p to 88p.

Royal Mail 2nd Class Stamp Price 2010-2020

Parcel prices are also being hiked, with a 1st class small parcel up to 1kg seeing a price rise from £3.55 to £3.70.

Royal Mail say that they understand many companies and households are finding it hard in the current economic environment and so considered any pricing changes very carefully and have sought to minimise any impact on customers. However they point to the fact they are expecting to make a loss in the 2020-21 financial year and say that the price hikes are are necessary to help ensure the sustainability of the one-price-goes-anywhere Universal Service.

Pointing to the potential loss and the ‘challenging business environment’, they add that they want to invest £1.8 billion in the UK to turnaround, grow and sustain the universal service. They add that the UK has one of the highest quality of service specifications of any major European country and say Royal Mail’s stamp prices are amongst the best value in Europe compared to other postal operators.

Royal Mail research shows that the European average for 1st Class letters (0-100g) is £1.05.

“We are operating in a tough market at present, under the threat of making a loss by 2021. These price increases will help us maintain the quality of service that is expected by our customers, while supporting the Universal Service.”
– Stephen Agar, Managing Director of Letters, Royal Mail

  • 2 months ago

    Every privatisation is the same.

    Higher prices and poorer service as the need to pump money to shareholders bleeds money out.

    • James
      2 months ago

      @andy as opposed to public ownership = no desire to innovate, no desire to keep costs down and a constant requirement to meet the demands of overpaid and underworked employees many of who could be replaced by robots.

    • Daniel
      2 months ago

      Higher prices: The average annual gas bill was almost £700 in 1986 when British Gas was privatised. It had fallen to £450 by the year 2000, before energy prices dramatically rose in the mid-2000s.

      Poorer service: There were still long waiting times to have a phone installed in your home before BT were privatised – and longer still if you wanted a choice of colour.

  • Barry S.
    2 months ago

    So many businesses make the same mistake. Need money so raise prices. Actually this drives customers away. Lower prices and increase custom, you’ll make more money in the long run though it may seem counterintuitive.

    Tomorrow i’ll be buying as many stamps as I can afford…

  • SAM
    2 months ago

    Royal Mail say they understand many blah blah blah blah. Same line trotted out every single year when they raise the prices, am shocked Brexit was not used this year however.
    Since Rico took over it has been complete disaster. Much like eBay they have become rudderless leaderless shambles (I know they have a lot of legacy issues and are full of people not willing to move with the times and full of poor management which is toxic) , but they have failed to innovate or provide sellers like us the service .
    So just keep put prices up and play into Amazon’s hands again.

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