Price Of First Class Stamps Set To Increase By 9p To 85p

Royal Mail said in a statement today that they understand that many companies and households are finding it hard in the current economic environment. As a result, they have considered any pricing changes very carefully and in doing so have sought to minimise any impact on their customers.

A Spokesperson said “From 1 January, 2021 the price of a 1st Class stamp will increase by 9p to 85p and the price of a 2nd Class stamp will increase by 1p to 66p. These changes are necessary to help ensure the sustainability of the one-price-goes-anywhere Universal Service.

The Universal Service Obligation, which requires Royal Mail to be able to deliver to 31 million home and business addresses across the UK, comes with high fixed costs. During the coronavirus pandemic1, letter volumes saw a 28% fall. The reduction in letter volumes has had a significant impact on the finances of the Universal Service2 which lost £180 million in the first half of the year. This demonstrates the need for change in the Universal Service. We are working tirelessly to deliver the most comprehensive service we can in difficult circumstances as the coronavirus pandemic continues to impact our operation.

The health and safety of our colleagues and our customers remains our number one priority. This means we have faced significant, additional costs related to COVID-19 (£85 million for the first six months) such as protective equipment, elevated absences, overtime and agency staff as well as the impact of necessary social distancing measures.

Royal Mail has taken a decision not to call upon the Government’s furlough scheme (Coronavirus Job Retention Scheme) throughout the pandemic. Royal Mail’s stamp prices are among the best value in Europe compared to other postal operators. Royal Mail research3 shows that the European average price for 1st Class letters (0-100g) is £1.21.”

Nick Landon Chief Commercial Officer at Royal Mail said: “Like other companies, 2020 has been a challenging year for Royal Mail. Our people have worked tirelessly to keep the UK connected throughout the pandemic and associated restrictions. These price increases will help us continue to deliver and sustain the Universal Service in challenging circumstances.”