A range of changes have recently taken place at Royal Mail with businesses commenting on more changes likely to come into effect
With UK mailing habits adapting to a range of changes, including stamp price increases, direct mail faces a potential time of upheaval, according to statements released by mailing company Quadient.
Over the past five years the price of second-class stamps has increased nearly 40% to 85p. The 85p price-point of second-class stamps means they are now the same cost as a first-class one was at the start of 2022. Over the same period first-class stamps have increased almost 140% to £1.65.
According to Quadient, Royal Mail is highly likely to increase stamp prices again, impacting both businesses and individual consumers.
David Beirne, head of postal relations at Quadient, says: “Royal Mail is almost guaranteed to increase stamp prices. This will prompt companies to become more selective, ensuring that every piece of mail sent is both necessary and correctly addressed.”
Major takeover
The price rises come after Royal Mail was fined for not meeting previous targets. In December, government-approved regulator Ofcom fined Royal Mail £10.5m for failing to meet its targets for first- and second-class deliveries in 2023/24.
In the same month, the UK government approved a £3.6bn takeover of Royal mail by Czech billionaire Daniel Kretinsky's EP Group.
Beirne highlights the importance of direct mail in business communication for a wide range of industries.
Beirne comments: “Mail is still absolutely essential. In fact, our research found that almost two thirds (62%) of UK consumers are more likely to open a letter than an email.
“Balancing this communication need with rising costs will be a key challenge for businesses this year.”
As part of EP Group’s purchase of Royal Mail, it promised that postal workers would get a 10% share of any dividends paid out to its owner Daniel Kretinsky
Earlier this year, Royal mail proposed a range of changes to the Universal Service Obligation (USO), a UK law designed to ensure a minimum quality and affordability for the UK’s mail services.
Royal Mail’s proposals for the USO released in 2024 included only delivering non-first class letters every other weekday, keeping its six-day-a-week service for only first-class letters.
As part of its purchase of Royal Mail, EP Group has made a ‘legally-binding’ commitment to maintain the USO during the entirety of its ownership.
Ofcom is expected to release its consultation document on changes to the USO in February of 2025.
Speaking of Ofcom’s USO consultation document, Beirne continues: “The consultation period is expected to be for a 12-week duration. This will kickstart a critical period, with a report and recommendations likely to follow in summer 2025.
“This process will shape the standards of mail services for years to come, impacting businesses that rely on cost-effective, reliable delivery, as well as everyday users.
“For businesses, the stakes couldn’t be higher. If they fail to advocate for expectations ahead of these recommendations, organisations risk being saddled with delivery schedules and pricing models that don’t align with their needs, potentially driving up costs and disrupting operations.”
Beirne advocates for company representatives to respond to the upcoming consultation to avoid unwanted impacts, adding: “To avoid being caught off guard when the dust settles in 2027, businesses need to make their expectations clear now. Stakeholders should take the time to read the consultation document when published and make their thoughts known by responding to the consultation.”
Christmas Card Habits
Following the recent Christmas period, Quadient also released the findings of a survey of UK consumers, revealing mailing habits including how many people still send Christmas cards.
Quadient’s research of 2,000 UK consumers, released in December of 2024, found that 79% sent at least one piece of physical mail in the previous year.
Of this number, around half (45%) of those surveyed sent a Christmas card in the mail within that period. A similar number (50%) said that they sent mail on an occasion where a letter is traditional such as Christmas, birthdays, or wedding invitations.
Anthony Coo, head of product at Quadient, stresses the importance of physical printed mail, saying: “Although the world is becoming increasingly digital, people still value the importance of having a postie delivering mail through their letterbox.
“Almost half of us sent a card last Christmas, demonstrating that many will always gravitate towards physical mail for the messages that really matter.”
Despite the positive outlook towards Christmas cards, according to an annual shopping trends report released by John Lewis, sales of boxed cards are down 23% this year, with sales of individual Christmas cards down 15%.
