UK Royal Mail 1st, 2nd class stamp prices to rise from April 7

UK Royal Mail 1st, 2nd class stamp prices to rise from April 7

The UK’s Royal Mail has announced a price increase for first-class and second-class stamps, effective 7 April 2025. The cost of a first-class stamp will rise by 5p to £1.70, while the second-class rate will increase by 2p to 87p according to Royal Mail. This marks the sixth adjustment in under three years, driven by the company’s need to balance affordability with rising operational costs as reported. Royal Mail cited a decline in letter volumes—from 20 billion annually in 2004/05 to 6.7 billion in 2023/24—as a key factor, with projections indicating a potential drop to 4 billion within four years according to industry analysis. The postal service also highlighted a growing number of addresses (up 4 million since 2004), which increases per-delivery costs according to business reports.

The price hike follows a £10.5 million fine imposed by Ofcom in December 2024 for missed delivery targets, with over 25% of first-class mail arriving late according to regulatory findings. Royal Mail has proposed reforms, including alternate weekday deliveries for second-class mail and the cessation of Saturday deliveries, pending final regulatory approval as part of their strategy. Citizens Advice criticized the second-class increase as “unjust,” calling it an additional burden on consumers according to consumer advocacy.

Separately, Royal Mail’s parent company, International Distribution Services, is undergoing a £3.57 billion acquisition by Czech energy tycoon Daniel Křetínský’s EP Group. However, regulatory clearance in Romania has delayed the deal, pushing completion to the second quarter of 2025 according to acquisition reports. The price changes apply to domestic and international services, with updated rate guides available for customers as detailed on their website. These adjustments reflect ongoing efforts to sustain financial viability amid structural challenges in the postal sector.