Royal Mail has said it will increase the price of first-class and second-class stamps.
The postal firm said the price of a first-class stamp would jump 6p to 76p and the price of a second-class stamp would rise 4p to 65p from 23 March.
It said the price increases were necessary to ensure the sustainability of its universal service.
Royal Mail said it was “operating in a challenging business environment” and was likely to be lossmaking in the next financial year.
Stephen Agar, the managing director of letters at Royal Mail, said: “We are operating in a tough market at present, under the threat of making a loss by 2021. These price increases will help us maintain the quality of service that is expected by our customers, while supporting the universal service.”
The firm said it had considered the pricing changes “very carefully” and sought to minimise the potential impact on customers.
The price increase comes at a testing period for the company, which is in talks over a new pay offer for staff amid the threat of strike action.
Royal Mail shares hit an all-time low earlier this year after it warned it could miss its turnaround targets as it continues to be dogged by the threat of strikes.
It said stamp prices were “amongst the best value in Europe compared to other postal operators”, and its own research showed the European average price for first-class postage was £1.05.
Last year, Royal Mail apologised to the regulator Ofcom after its most recent stamp price increase was found to breach the watchdog’s rules. In March, the price of a first-class stamp increased by 3p to its current price of 70p, while a second-class stamp rose 3p to 61p. The increase came despite a price cap of 60p for second-class stamps from the watchdog, which ended in April last year.
The current price cap for second-class stamps is 65p, but this will increase in line with the consumer price index rate of inflation from April. There is no regulated cap for first-class stamps.
