Stamp price rises

Royal Mail has announced that from 30 April the price of a first class stamp for a standard letter will rise from 46p to 60p.

The price of a second class stamp for standard letter will increase from 36p to 50p.

The cost of a large letter stamp up to 100 grams will rise from 75p to 90p for First Class and from 58p to 69p for Second Class.

The increases followed a decision by Ofcom to give Royal Mail the freedom to set its own prices.

Royal Mail said that even after the increases, second-class stamps will still be the cheapest in Europe while first class will be the fifth lowest.

Moya Greene, CEO, said: “We know how hard it is for households and businesses when our economy is as tough as it is now. No-one likes to raise prices in the current economic climate but, regretfully, we have no option.

“Royal Mail provides one of the highest quality postal services in Europe for amongst the lowest prices for both consumers and business.

“That service is under threat from declining volume, e-substitution and ever increasing competition. Because of these pressures Royal Mail has lost £1 billion over the last four years; the sustainability of the service is now at risk. Price increases are needed to return the Universal Service to sustainability.”

To help low income households Royal Mail will keep stamps for letters for Christmas 2012 at the same price as in 2011. Households on pension credit and employment and support allowance (or incapacity benefit) will be eligible. They will be able to buy up to three books of 12 stamps – 36 stamps in total.