Royal Mail is about to increase the price of first class and second class stamps.
The price of a first class stamp will rise by 6p to 76p and the price of a second class stamp will soar by 4p to 65p after March 23.
The postal agency mentioned the price will increase are “necessary” to make sure the service’s sustainability in a “challenging business environment”.
Royal Mail additionally mentioned it’s seemingly to be loss-making within the subsequent monetary 12 months.
Stephen Agar, managing director of letters at Royal Mail, mentioned: “We are working in a troublesome market at current, underneath the risk of making a loss by 2021.
“These price will increase will assist us keep the standard of service that’s anticipated by our prospects, whereas supporting the common service.”
Pricing adjustments had been thought of “very rigorously” and the corporate has checked out minimising the potential influence on prospects, it added,
Royal Mail shares hit an all-time low earlier this 12 months following warnings that it may miss its turnaround targets due to the risk of strikes.
Stamp costs are “amongst one of the best worth in Europe in contrast to different postal operators”, in accordance to the corporate.
Last 12 months, Royal Mail apologised to regulator Ofcom after its latest stamp price increase was discovered to breach the watchdog’s guidelines.
In March, the price of a first class stamp elevated by 3p to its present price of 70p, whereas the price of a second class stamp elevated by 3p to 61p.
The price increase got here regardless of a price cap of 60p for second class stamps from the watchdog, which led to April final 12 months.
The present price cap for second class stamps is 65p, however this can increase in keeping with the Consumer Price Index charge of inflation from April. There isn’t any regulated cap for first class stamps.