1st Class Stamps Rise 9p on 01.01.21

1 December 2020
1st Class Stamps Rise 9p on 01.01.21

Royal Mail announces an increase of 9p to First (85p) and 1p to Second Class (66p) stamps from 1st January 2021, due to trading difficulties during the pandemic.  Prices remain among the best value in Europe with savings up to 29% on postage via Mailmark franking!

‘Royal Mail understand that many companies and households are finding it hard in the current economic environment. As a result, we have considered any pricing changes very carefully and in doing so have sought to minimise any impact on our customers.

From 1 January, 2021 the price of a 1st Class stamp will increase by 9p to 85p and the price of a 2nd Class stamp will increase by 1p to 66p. These changes are necessary to help ensure the sustainability of the one-price-goes-anywhere Universal Service.

The Universal Service Obligation, which requires Royal Mail to be able to deliver to 31 million home and business addresses across the UK, comes with high fixed costs. During the coronavirus pandemic¹, letter volumes saw a 28% fall. The reduction in letter volumes has had a significant impact on the finances of the Universal Service² which lost £180 million in the first half of the year. This demonstrates the need for change in the Universal Service. We are working tirelessly to deliver the most comprehensive service we can in difficult circumstances as the coronavirus pandemic continues to impact our operation.

The health and safety of our colleagues and our customers remains our number one priority. This means we have faced significant, additional costs related to COVID-19 (£85 million for the first six months) such as protective equipment, elevated absences, overtime and agency staff as well as the impact of necessary social distancing measures.

Royal Mail has taken a decision not to call upon the Government’s furlough scheme (Coronavirus Job Retention Scheme) throughout the pandemic. Royal Mail’s stamp prices are among the best value in Europe compared to other postal operators. Royal Mail research³ shows that the European average price for 1st Class letters (0-100g) is £1.21.

Nick Landon Chief Commercial Officer at Royal Mail said: “Like other companies, 2020 has been a challenging year for Royal Mail. Our people have worked tirelessly to keep the UK connected throughout the pandemic and associated restrictions. These price increases will help us continue to deliver and sustain the Universal Service in challenging circumstances.”

If you’d like to find out more about the savings available by franking letters, including 19p on every 2nd Class letter, please call the team on 0800 977 8097, or review the new rates online.

¹ First six months of the financial year
² The Reported Business is the regulated entity, defined by Ofcom, which delivers the Universal Service. The Reported Business contains the Universal Service network and all products provided through or in relation to that network.
³ Research based on World Bank Purchasing Power Parity exchange rates for 2019 for each country, using UK volume weights to provide a common currency average stamp letter price for items up to 100g


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