Royal Mail Implements Another Stamp Price Hike as Delivery Performance Lags
Royal Mail has raised the cost of stamps once more, effective today, pushing first class postage to £1.80 and second class to 91p. This increase represents a staggering 181% surge in first class stamp prices since 2016, when they stood at just 64p. The postal service attributes the rise to a sharp decline in letter volumes and a growing number of delivery addresses across the UK.
Declining Demand and Expanding Reach Drive Price Adjustments
Richard Travers, managing director of letters at Royal Mail, explained the decision, stating, "We always consider price changes very carefully, balancing affordability with the rising cost of delivering mail." He highlighted that UK adults now spend an average of only £6.50 annually on stamps, with letter volumes plummeting by 70% over the past two decades. Concurrently, the number of addresses served has increased by four million, reaching 32 million nationwide.
Persistent Delivery Shortfalls Amid Service Reductions
This price increase comes as Royal Mail continues to fall short of its delivery targets. During the 2024/25 financial year, the service delivered only 77% of first class mail and 92.5% of second class mail on time, missing its goals of 93% and 98.5%, respectively. The last time Royal Mail met its annual target for first-class deliveries was in the 2019/20 period.
In a recent regulatory shift, Ofcom granted Royal Mail permission to cease Saturday deliveries for second class post and reduce service to alternate weekdays instead of six days a week. Despite this scaled-back schedule, the company maintains a target for second class letters to arrive within three working days.
Ownership Changes and Apologies for Service Issues
Royal Mail was acquired last June by Czech billionaire Daniel Kretinsky’s EP Group in a £3.6 billion deal. Last month, Kretinsky apologised for delayed letters but defended the service, telling the Business and Trade Committee, "I’m deeply sorry for any letter that arrives late. I’m deeply sorry if we are not delivering the letters on our promise, but I can’t adhere to your sentence that quality of service is declining as the numbers just don’t evidence that at all." He acknowledged that performance "is not where we want it to be" but claimed consistency over the past three years.
The ongoing challenges highlight a postal system grappling with modern demands while striving to maintain reliability and affordability for consumers.
