Price of first class stamps to rise 9p to 85p

[POSTMAN]

https://www.bbc.co.uk/news/business-55150052

The cost of a first class stamp will rise by 9p to 85p on 1 January, Royal Mail has announced.

A second class stamp will also go up in price, rising by 1p to 66p on the same day.

Prices were raised to their current levels in March. Royal Mail said the latest move was "necessary to help ensure the sustainability" of the universal service.

It said 2020 had been a "challenging year" for the business.

The company added that it had "considered any pricing changes very carefully" owing to the coronavirus pandemic.

Pandemic effect

The move comes shortly after it revealed letter volumes had fallen 28% in the six months to September 27, compared with a year earlier and that revenue from parcel deliveries has surpassed letters for the first time, fuelled by a surge in online shopping during the pandemic.

Royal Mail said: "The reduction in letter volumes has had a significant impact on the finances of the universal service which lost £180m 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."

Defending the price rises, the company added that the Covid-19 pandemic had cost it £85m during the period on protective equipment, covering absences, overtime and agency staff.

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."

Regulator Ofcom said last week that Royal Mail would be able to cut Saturday letter deliveries and still meets the needs of most customers.

[Rommagic]

Biggest rise ever?.

[clashcityrocker]

That's about an 8% rise.
I imagine our pay offer will be along similar lines.

[wallan]

Trying to make 1st cl uneconomic to use

[Rommagic]

10 per cent rise.

[hans solo]

how can they justify a rise in 1st class stamps when the mails left in the frames everyday
they are not getting the service they have paid for
and rm are actually committing corporate fraud with service

[RobertT]

I make it an 11.84% rise!

[clashcityrocker]

Correct.
My mental arithmetic isn't what it used to be.

[ddtc]

Not at all obvious what they are planning here.

[Sir Henry]

Not at all obvious what they are planning here.

To call the rise in value of our Xmas stamps a lump sum and therefore part of the pay deal?

[yellowbelly]

Not at all obvious what they are planning here.

To call the rise in value of our Xmas stamps a lump sum and therefore part of the pay deal?

- actually laughed out loud at this!! Good one!

[maisymoo04]

still cheap

[derekm]

Even less people will now use the postal services. Putting the price up doesn’t mean more cash probably add to the letter decline.

[postslippete]

how can they justify a rise in 1st class stamps when the mails left in the frames everyday
they are not getting the service they have paid for
and rm are actually committing corporate fraud with service

Thats a very good point. Charging more for the customers and then delivering a worse service in return. This from an Interim Chief Exec which in an open letter to us all that says that the magic ingredient is customers. Well, what customer is going to pay to send a first class letter within the UK knowing that its going to take over a week for it to be delivered??

[renrag40]

how can they justify a rise in 1st class stamps when the mails left in the frames everyday
they are not getting the service they have paid for
and rm are actually committing corporate fraud with service

Thats a very good point. Charging more for the customers and then delivering a worse service in return. This from an Interim Chief Exec which in an open letter to us all that says that the magic ingredient is customers. Well, what customer is going to pay to send a first class letter within the UK knowing that its going to take over a week for it to be delivered??

RM in times gone by used to increase the price differential between 1st and 2nd class mail when the proportion of mail that was 1st class went above a certain percentage....... the reason being that they could not guarantee next day deliver of 1st class mail if it grew above that certain key percentage.