The cost of Royal Mail stamps increased again on Monday, making it the sixth increase in three years.
The price of additional Royal Mail services, like “Signed For” and “Tracked”, have also gone up.
Royal Mail attributed the price increase to fewer letters being delivered.
• Read more: More than two-thirds think rises in first-class stamp price are unfair – poll
Nick Landon, chief commercial officer at Royal Mail, said in a statement: “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.”
According to Royal Mail, the quantity of letters delivered has decreased from 20 billion two decades ago to 6.6 billion today, and it anticipates that this figure will reduce even further to four billion in the next few years.
Royal Mail could save between £250m and £425m if fewer second-class deliveries were made, according to regulator Ofcom.
But the watchdog cautioned that Royal Mail still has to improve.
Over the past 18 months, Royal Mail has been fined more than £16m for poor service and missing delivery deadlines.
Ofcom is proposing to lower the percentage of first-class mail that has to be delivered the next day from 93 per cent to 90 per cent and the percentage of second-class mail that needs to be delivered within three days from 98.5 per cent to 95 per cent.
It follows the announcement by Ofcom that Royal Mail will be cutting back on the number of days it takes to deliver second-class letters. In addition to eliminating second-class deliveries on Saturdays, it plans to cut service to alternating weekdays.
Delivery of first-class mail would continue to take place six days a week, Monday through Saturday.
What are the new Royal Mail stamp prices?
Standard first-class stamp prices have increased by 5p to £1.70, while standard second-class stamp prices have increased by 2p, from 85p to 87p.
While a large second-class stamp still costs £1.55, the price of a large first class stamp has increased from £2.60 to £3.15.
Cost of stamps
Postal prices for letters
- 1st Class from £1.70
- 2nd Class from 87p
- 1st Class Signed For from £3.60
- 2nd Class Signed For from £2.77
According to Royal Mail, even with the updated pricing, first-class and second-class stamps in the UK still cost less than the average for Europe, which is £1.41 and 1.87, respectively.
How you can beat stamp price hikes
MoneySavingExpert.com founder Martin Lewis has long advised everyone to buy stamps in bulk before prices rise, which can help them save a substantial sum on future postage expenses.
Mr Lewis said: “For years, every time stamps go up in price, I've suggested people stock up and bulk-buy in advance as, provided the stamp doesn't have a price on it and instead just says the postage class, it's still valid after the hike.
“So you may as well stock up now, even if it's just for Christmas cards for the next few Christmases.”
If you’re not one for bulk buying, consider switching to second-class postage instead. It usually takes two or three days instead of a next-day service.
As an alternative, you can opt for a free e-card and completely save the expense of a stamp.
A parcel courier website like Parcel2Go or ParcelHero may prove to be more affordable than Royal Mail if your item weighs more than 1kg.
