How much is a first class stamp UK? New cost of fastest Royal Mail delivery, why prices are going up

It comes as the Royal Mail struggles with its finances in the wake of record inflation and strikes by the Communication Workers Union (CWU)
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The cost of a first class stamp is set to rocket by 16% from April despite the cost of living crisis.

Royal Mail bosses have decided to implement the price hike as the company battles major financial losses. Weeks of strike action by the Communication Workers Union (CWU) over pay and job cuts has cost the company hundreds of millions of pounds.

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But it will be bad news for consumers and businesses who frequently send letters, as they face a range of cost increases next month. Households across the country are set to see hikes to water bills and council tax, as well as mobile and broadband deals.

At the same time, support for business energy bills is set to become much less generous, with sectors such as the hospitality industry warning of potential closures and the food industry suggesting production could be scaled back.

Domestic energy bills may not suffer the same fate, as there are reports the government may keep the current rate of the energy price guarantee in place. It comes after warnings of a cliff edge scenario that would increase fuel poverty.

So, how much will the cost of stamps increase by from April - and what has the Royal mail said about the changes?

How much will stamp prices increase from April 2023?

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The cost of first class and second class stamps are set to rise from Monday 3 April 2023.

The price of first class post currently sits at 95p. But this will increase next month by 15p (16%) to £1.10, meaning the stamp will cost more than £1 for the first time in the Royal Mail’s 500-year history. Meanwhile, a second class stamp will rise in price by 7p (10%) to 75p from the same date.

Royal Mail stamp charges are rising from April 2023 (image: Adobe)Royal Mail stamp charges are rising from April 2023 (image: Adobe)
Royal Mail stamp charges are rising from April 2023 (image: Adobe)

What has the Royal Mail said about stamp price rises?

The Royal Mail has said it has to increase the cost of stamps to maintain its universal service. It said the hikes will ensure its operation “remains sustainable”.

The privately-owned delivery company said it needs to cover the inflation it has seen in its operating costs, as well as an overall decline in the number of letters being sent in the UK. It said the volume of non-parcel mail has dropped 25% compared to before the Covid pandemic.

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The chief commercial officer at the Royal Mail, Nick Landon, said: “We appreciate that many businesses and households are facing a challenging economic environment and we are committed to keeping our prices affordable.

“We have to carefully balance our pricing against a continued decline in letter volumes and the increasing costs of delivering letters six days a week to an ever-growing number of addresses across the country. We need to make these price changes to ensure we can continue to maintain and invest in the one-price-goes-anywhere universal service for years to come.”

It comes as the Royal Mail has requested that the government changes the statutory requirement for it to deliver letters from Monday to Saturday every week. It wants to cut delivery days from the current six to five to better reflect changes to “customer behaviours”.

First class stamp prices are rising despite the cost of living crisis (image: Adobe)First class stamp prices are rising despite the cost of living crisis (image: Adobe)
First class stamp prices are rising despite the cost of living crisis (image: Adobe)

The news also comes as the Royal Mail faces one of the worst industrial disputes in its history. Since revealing plans in 2022 to slash 6,000 jobs, its services have ground to a halt after almost three weeks’ worth of strikes. The Communication Workers Union (CWU) is trying to push the company to implement inflation-busting pay rises and halt its redundancy plans.

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The row has become increasingly bitter, with the union accusing the Royal Mail of wasting money on a £1.7 billion fund intended “to crush its own workers” and the company retorting that strikes would only increase the need for job losses. Talks have been deadlocked for several months, with Royal Mail CEO Simon Thompson facing severe criticism from MPs for two “extraordinary” appearances in front of a parliamentary select committee.

Strikes have led to the Royal Mail posting a £295 million operating loss in the nine months to December 2022. The company’s overall losses for the full 2022/23 financial year are expected to hit £400 million. Meanwhile, its share price remains 30% below where it was a year ago despite a recent recovery.

Additional reporting by the PA news agency

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