Everything seems to be getting more expensive these days, and it seems like sending a simple letter is no exception.
The cost of living is set to bite this spring as energy bills rise, as will a National Insurance tax hike.
Food bills have already been rising for some time and interest rates are also set to rise which could hurt mortgage lenders with variable rates.
So how much will the price of postage increase? Here’s what you need to know.
How much does a postage stamp currently cost?
1st 2nd class postage stamps from Royal Mail costs 85p. A second-class stamp costs 66p. You can buy stamps at the post office, or online here.
When will the price of stamps increase and how much?
First class stamps will rise by 10p to 95p, an increase of 12 percent, while second class stamps will rise by 2p to 68p.
Why are prices rising?
Rising inflation continues to bite British households as petrol prices hit new record highs earlier this month, a day before stamp duty hikes were announced on March 4.
The added pressure on household budgets comes as electricity prices are set to depart from the current price cap, which is set at £1,277 per year for the average household.
1st 2nd class postage stamps Royal Mail claims that it has no choice but to respond to the impact of rising inflation in the context of declining letter use.
It also said it had to deliver to an increasing number of addresses, which added to the overall cost.
The number of addresses has increased by about 3.5 million since 2004.
Letter volumes are down more than 60 percent from their peak in 2004/5 and nearly 20 percent since the pandemic began.
Nick Landon, Royal Mail’s chief commercial officer, said: “We understand that many companies and households are finding it difficult in the current economic environment and we will always keep our prices as affordable as possible.”
Mr. Landon added: “While the number of letters delivered by our postmen and women has fallen from around 20 billion a year to around seven billion since 2004/5, the number of letters addressed to them has increased by around 3.5 million over the same period. duration
“We have to balance the cost of delivering to an increasing number of addresses six days a week against the decreasing letter volume and increasing costs.”
Unite general secretary Sharon Graham has criticized Royal Mail, claiming the price hike is taking place against a backdrop of “massive profits” and plans to cut jobs.
He said: “The Royal Mail boardroom is raising prices again and helping itself to huge profits. It is behaving like a short-term greedy speculator rather than a responsible owner of a key UK public service.
“With plans to cut 900 postal manager jobs and the threat issued to Unite that the collective bargaining agreement for our members will be ignored, the owners of Royal Mail are undermining this essential service. Ofgem needs to get to grips because universal service obligations are at serious risk.
“Unite’s postal managers are at the heart of this service and our union will support them in this fight to protect jobs and services.”
Royal Mail lost £180m in revenue in the first half of 2020 as letter deliveries fell due to the lockdown due to Covid-19.