The cost of a first-class stamp will rise to £1.70 from 7 April, representing an increase of 3 per cent or 5p from the current level.
Today marks the sixth rise in first class stamp prices in just three years.
International Distribution Services, the owner of Royal Mail, also announced that the price of second class stamps will rise by 2p or 2.4 per cent to 87p.
The group claimed the decision had been carefully considered and required ‘balancing affordability with the increasing cost of delivering mail.’
However, Citizens Advice blasted IDS for the change and claimed the move was ‘yet another blow to consumers. It claimed the increase to price of second class stamps was ‘unjust.’
Going higher: The cost of a first-class stamp will rise to £1.70 from 7 April. Pictured is one of the new Royal Mail stamp designs unveiled this week
The price hikes come in the wake of plans to remove second class deliveries on Saturdays and reduce deliveries to two or three days a week.
Ofcom launched a consultation on the new proposals, which is open to the public until 10 April. A decision is expected this summer.
Nick Landon, chief commercial officer at Royal Mail said: ‘We always consider price changes very carefully but the cost of delivering mail continues to increase.
‘A complex and extensive network of trucks, planes and 85,000 posties is needed to ensure we can deliver across the country for just 87p.
‘Ofcom has recognised that reform is urgently needed to protect the one-price-goes-anywhere Universal Service which requires Royal Mail to deliver letters to around 32 million UK addresses six days a week.
‘Reform will allow continued investment in the modernisation and transformation of the business to provide a more financially sustainable service.’
According to IDS, the number of letters Royal Mail delivers has slumped from a peak of 20billion in 2004-05 to 6.6billion in 2024.
The group expects the number of letters it handles could drop to 4billion a year within the next four years.
It added: ‘Over the same period, the number of addresses has risen by four million meaning the cost of each delivery continues to rise.’
Tom MacInnes, director of policy at Citizens Advice, said: ‘This is yet another blow to consumers, who are being forced to pay the price in more ways than one.
‘While stamp prices continue to climb, millions of people face post delays every year.
‘Royal Mail hasn’t met an annual delivery target for five years, but consumers will pay 124 per cent more for a 1st class stamp, and 34 per cent more for a 2nd class stamp, than they did in 2020.
‘It’s unjust for Royal Mail to raise the price of a 2nd class stamp, while the regulator Ofcom looks at reducing 2nd class deliveries to alternate weekdays. And as 1st class stamps are becoming unaffordable, people could be forced by price pressures into choosing a slower service.’
He added: ‘Ofcom needs to act fast – consumers have a right to an affordable service, but year-on-year it’s allowing Royal Mail to charge more for a service that isn’t being delivered.’
Amanda Fergusson, chief executive at the Greeting Card Association, said: ‘Here we go again.
‘Yet again Royal Mail is asking people to keep paying more, for less, demonstrating the urgency behind our call for MPs to investigate Ofcom and Royal Mail’s plan to weaken the service.
‘Our members – and their customers – know imminent plans to slash second-class services will leave them reliant on a first-class stamp at runaway prices. ‘
‘It’s time for MPs to act – they must make sure Royal Mail isn’t given carte blanche to make the postal service less reliable and unaffordable.’
What’s going on at Royal Mail?
Royal Mail’s parent company IDS is being sold to a business controlled by Czech billionaire Daniel Kretinsky in a deal worth £3.6billion.
Starmer’s Labour government approved the deal last year, paving the way for the more than 500-year-old postal service to pass into foreign ownership for the first time.
The government will maintain a ‘golden share, which means Kretinsky’s business will have to get approval for any changes to Royal Mail’s ownership, the location of its headquarters and its tax residency.
Royal Mail must also adhere to the Universal Service Obligation, which Kretinsky has pledged he will do for ‘as long as I am alive.’
This week it emerged that Royal Mail’s takeover by Kretinsky is set to be delayed until the second quarter amid a political crisis in Romania.
On Thursday, Kretinsky’s EP Group said the only regulatory bar still to be cleared was connected to its foreign direct investment in Romania.
It confirmed that, while there were no major issues expected with the Romania investment and that talks to gain approval from authorities were ‘progressing well’, it believed clearance would only come in time to see the deal complete in the second quarter.
EP Group had previously hoped to complete the takeover in the first three months of this year.
Kretinsky needs to clear the regulatory hurdle in Romania because part of his business operates in the country.
Romania is in the middle of political upheaval after a presidential election was cancelled last year following allegations of Russian interference.
Ofcom said in January it had provisionally concluded that reducing the second class letter service to alternate weekdays, while keeping first class deliveries six days a week, would continue to meet postal users’ needs.
This would save Royal Mail between £250million and £425million a year, according to the regulator.
DIY INVESTING PLATFORMS
AJ Bell
AJ Bell
Easy investing and ready-made portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free fund dealing and investment ideas
interactive investor
interactive investor
Flat-fee investing from £4.99 per month
Saxo
Saxo
Get £200 back in trading fees
Trading 212
Trading 212
Free dealing and no account fee
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.
Some links in this article may be affiliate links. If you click on them we may earn a small commission. That helps us fund This Is Money, and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.
This article was originally published by a www.dailymail.co.uk . Read the Original article here. .