From the 7th of October 2024, the price of 1st Class stamps will increase to £1.65. The price of 2nd Class stamps will remain unchanged at 85p.
This 30p rise from £1.35 in the cost of a 1st Class Stamp follows a previous 10p rise in April this year, meaning the cost of a stamp has risen from £1.25 to £1.65 in six months.
For the first time in Royal Mail’s history, the cost of a 1st Class Stamp is fast approaching double the cost of a 2nd Class Stamp!
Royal Mail say that they have sought to keep price increases as low as possible in the face of declining letter volumes, inflationary pressures and the costs associated with maintaining the Universal Service.
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.
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 Universal Service must adapt to reflect changing customer preferences and increasing costs so that we can protect the one-price-goes anywhere service, now and in the future.
– Nick Landon, Chief Commercial Officer, Royal Mail
If you are wondering why they’re not increasing the cost of a 2nd Class stamp, it’s because prices for these are regulated and they can’t. What Royal Mail are asking for (and Ofcom are considering) is to cut Saturday 2nd Class deliveries and only pop 2nd Class letters through your door a couple of times a week.
A 1st Class Stamp would still see deliveries supposed to take place six days a week, but judging by Royal Mail’s Quality of Service reports even that hasn’t happened for the past couple of years, leading to fines from Ofcom. For the 2023/24 financial year, Royal Mail only delivered delivered 74.5% of mail with a 1st Class Stamp within one working day against a target of 93%.
This price rise in the cost of a 1st Class stamp significantly widens the gap between the two services. Until recent years, 1st & Second Class stamp costs roughly tracked each other, but from 2020 onwards the gap widened dramatically seeing 1st Class costs accelerate rapidly in comparison to 2nd Class.
It looks very much like if you want any hope of letters arriving on time, you’re going to have to pay a significant premium. Or you’re going to have to accept that 2nd Class really is an inferior service and going to get even slower if Ofcom accept the proposals to cut the number of delivery days.
3 Responses
Jeez gone are the days taking sack fulls of Large letters up the road. I don’t think I even have a RMG invoice this month. It is all Evri and that InPost I am using these days, just less hassle tbh.
They are clearly trying to just get rid of the service and force everyone onto the tracked services
Price for a large letter 250 g is crazy for 1st class.
It’s Tracked 48 LL prices that make no sense to me.
I can ship PARCELS via EVRi for cheaper.
And, I’m talking Joe Public prices as well.
Here are some reasons when it can make sense.
1) The address is subject to a surcharge by Evri for being remote, which will roughly double the price and make it a lot more expensive than the same price for all by Royal Mail.
2) You have a Royal Mail daily collection from your premises, but would have to make a special trip to an Evri Parcelshop.
3) A lot of buyers do not like Evri and will avoid buying from you if you use them.