Price Of Stamps To Rise Again
21st February 2020
The price of a first class stamp will be increased by 6p to 76p and the price of a second class stamp will rise 4p to 65p.
The cost of Royal Mail stamps will increase from 23 March 2020.
Stephen Agar, managing director of letters at Royal Mail said: "We are operating in a tough market at present, under the threat of making a loss by 2021.
"These price increases will help us maintain the quality of service that is expected by our customers, while supporting the universal service."
The 2020 price raise is much higher than inflation being over 4% while the inflation rate is less than 2%. Wage inflation has also been significantly lower than 3% in the past couple of years.
Royal Mail price increased for 2019, raising the price of both 1st and 2nd Class stamps by 3p.
Letters, whilst declining around 4% each year, still represent some 55% of Royal Mail's UK revenues according to their 2017-18 annual statement. Letters represented about £4.15 billion revenue with parcel contributing £3.46 billion.