Stamp Prices Soar Again: First-Class Delivery Now Costs £1.80

Royal Mail Hikes First-Class Stamp Price to £1.80 Amid Performance Backlash

Royal Mail has implemented yet another price hike for its postal services, pushing the cost of a first-class stamp to £1.80—a 10p increase—even as the company continues to miss critical delivery targets. Second-class stamps have also seen a rise, climbing 4p to reach 91p.

This latest adjustment marks the eighth price increase in just five years. A decade ago, a first-class stamp cost only 64p, meaning the price has nearly tripled in ten years.

"Unsustainable" Economic Pressures

Royal Mail justifies the increases by pointing to a widening gap between falling letter volumes and a rising number of delivery addresses. Richard Travers, Royal Mail’s managing director of letters, stated that the company must balance "affordability with the rising cost of delivering mail."

Adding to the financial pressure, business account holders will face higher fuel surcharges starting May 3—5% for domestic services and 5.5% for international services. The company cited the impact of the conflict in the Middle East on energy costs as a primary driver for these surcharges.

Failing Targets and Allegations of "Hidden" Mail

The price hike arrives at a sensitive time for the postal giant, which is currently under intense scrutiny from both regulators and Parliament.

• Delivery Failures: Only 77% of first-class letters are currently delivered within the target of one working day, falling well short of the 93% mandate.
• Legislative Pressure: Liam Byrne, chair of the Business and Trade Committee, has expressed deep concern over "significant failures" and "chaos" in certain postal regions.
• Whistleblower Claims: Recent reports from postal workers suggest that staff have been instructed by senior management to hide unprocessed mail to create the illusion that delivery targets were being met. Royal Mail has stated it takes these allegations "very seriously."

Impact on Small Businesses

For small business owners like Dean Morris, who runs a greeting card company, the issue is as much about reputation as it is about cost. Morris noted that delivery has become increasingly inconsistent, with customers frequently chasing orders a week after they were posted.

"Sometimes it feels that second class is literally the last thing that Royal Mail look at, in preference to parcels," Morris told the BBC, highlighting a common complaint that the service prioritizes its more lucrative parcel business over traditional letters.

Calls for Reform

Consumer advocacy groups, including Citizens Advice, have slammed the move. The charity argues that future price increases should be legally tied to performance metrics, ensuring that consumers are not paying more for a deteriorating service.

While owner Daniel Křetínský admitted to MPs in March that the service is "not perfect," he insists a plan is in place to stabilize the national postal service. However, for many businesses and households, the rising cost of a basic stamp is becoming a symbol of a service in decline.