International Distributions Services PLC (LSE:IDS)-owned Royal Mail has said it will hike first-class stamp prices in a bid to ward off “very real and urgent” financial challenges.
The stamps will cost 30p more at £1.65 from October 7 as a result, with second-class post set to remain unaffected.
"We always consider price increases very carefully,” chief commercial officer Nick Landon commented.
“However, when letter volumes have declined by two-thirds since their peak, the cost of delivering each letter inevitably increases.”
Such pressure is said to have coincided with rising business costs in meeting obligations to provide a one-price-goes-anywhere universal service on letter deliveries six days a week.