Royal Mail: Price of first-class stamp to rise by 30p but second-class stamps to stay at 85p - how much is it

However, the price of second-class stamps will remain at 85p. This follows an earlier price hike in April when the cost of first-class stamps rose by 10p to £1.35, and second-class stamps saw a similar 10p increase to 85p.

Royal Mail stated that it has worked to keep price increases as low as possible despite facing inflationary pressures and the costs associated with maintaining the Universal Service Obligation (USO), which requires six-day-a-week deliveries across the UK.

The company said: “The minimum requirements of the universal service haven’t changed for over 20 years despite major changes to how people communicate.”

Letter volumes have significantly decreased, with Royal Mail reporting a drop from 20 billion in 2004/5 to just 6.7 billion in 2023/4. The average household now receives only four letters per week, compared to 14 a decade ago. Meanwhile, the number of delivery addresses has risen by four million, increasing the cost per delivery.

Nick Landon, Royal Mail’s chief commercial officer, said: “We always consider price increases very carefully. However, when letter volumes have declined by two-thirds since their peak, the cost of delivering each letter inevitably increases.”

He added: “A complex and extensive network is needed to get every letter and parcel across the country for a single price – travelling on trucks, planes, ferries and in some cases drones before it reaches its final destination on foot. We are proud to deliver the universal service, but the financial cost is significant.”

The postal regulator Ofcom is also reviewing changes to the USO, which could allow Royal Mail to drop Saturday deliveries for second-class letters under plans set to be consulted on in early 2025, with a decision expected by the summer.

For now, Royal Mail stresses that its service must adapt to reflect the changing habits of customers and increasing costs to protect the "one-price-goes-anywhere" service for the future.