Price of First Class Stamp Rises to £1.80

Royal Mail has announced another price hike for stamps, sparking criticism over its failure to meet delivery expectations. The first-class stamp now costs £1.80, a 10p increase, while the second-class letter is now 91p, up 4p. The company claims the adjustments are needed due to a decline in letter volume and a surge in address numbers.

Fuel Surcharge Adjustments

Starting next month, business account holders will face higher charges, tied to the energy cost surge from the Iran conflict. The fuel surcharge has risen by 5% for domestic services and 5.5% for international routes, effective 3 May. The decision was described as being made with careful thought.

Consumer and Business Reactions

Dean Morris, a greeting card business operator, noted that delivery times have grown erratic and delayed, impacting his brand reputation more than his bottom line. Customers often wait six to seven days for their orders, he explained on BBC Breakfast. “Second-class delivery is often the only viable option for both us and the customer,” Morris added, highlighting its widespread use by online retailers.

Performance Concerns

Only 77% of first-class letters are delivered within a day, missing the 93% target. This marks the eighth rate increase in five years, occurring as Royal Mail faces mounting pressures. Recent weeks have seen MPs and the public raise concerns about the service’s reliability, with postal workers revealing they were pressured to relocate or conceal mail to meet internal targets.

Addressing the Issues

Royal Mail stated it takes complaints about hidden mail “very seriously,” citing a 92% on-time delivery rate. The company’s owner, Daniel Křetínský, acknowledged service flaws but emphasized plans to improve. This followed concerns raised by Liam Byrne, chair of the Business and Trade Committee, who called reports of “significant failures” in letter delivery “very concerning.” In February, the committee had written to Royal Mail about disruptions in postal areas since Christmas.

“We always consider price changes very carefully, balancing affordability with the rising cost of delivering mail,” said Richard Travers, Royal Mail’s managing director of letters, during last month’s announcement.

The charity Citizens Advice has also criticized the price increases, arguing they should reflect performance improvements. The latest changes, combined with ongoing delivery issues, have drawn ire from consumer groups, who see the hikes as out of sync with service quality.