Brace yourselves for another upheaval in postal pricing – First-class UK stamps are set to undergo yet another surge at the start of October, increasing by 15p. This third hike in just 18 months deals a fresh blow to both consumers and businesses reliant on the postal services.
This forthcoming hike, effective from October 2nd, will push the price of a first-class stamp to £1.25 which is a 47% leap from the rates seen in March last year.
While the cost of a second-class stamp remains steady at 75p, well below the European median of 94p, Royal Mail justifies the impending rise in first-class postage as a move towards alignment with the European median.
Citing mounting cost pressures, a challenging economic landscape, and the lack of reform in the universal service obligation (USO), Royal Mail justified this surge. The USO mandates the delivery of letters to all 32 million addresses in the UK six days a week, irrespective of location, under a uniform pricing structure.
Royal Mail is actively lobbying for USO reforms, given the dwindling letter volumes. Over the years, the number of letters handled by Royal Mail has plummeted significantly—from 20 billion in 2004-05 to a mere 7 billion in 2022-23. This sharp decline coincides with a contrasting increase in the number of delivery addresses, now totalling 4 million more.
Nick Landon, Royal Mail’s chief commercial officer, empathised with the economic challenges faced by customers, emphasising the careful consideration given to these price alterations amidst a substantial decline in letter volumes.
The dramatic reduction in letter volumes—down by over 60% since its peak in 2004-05 and 30% since the onset of the pandemic—underscores the urgency for the universal service to adapt to this evolving reality. As Royal Mail navigates these changes, the landscape of postal services continues to shift, impacting both senders and receivers alike.