The cost of a second-class stamp could soar to 94p next year as Royal Mail continues its relentless hikes in the price of postage, campaigners have warned.
It comes after first-class stamps went up to £1.25 last month, and Royal Mail’s German boss Martin Seidenberg controversially said that stamps remained a ‘bargain’ despite outrage over rising prices and poor service.
In a recent submission to regulator Ofcom, the firm repeatedly highlighted that the typical cost of second-class post in most European countries was 94p.
This has led to fears that Royal Mail may raise its prices to a similar level – which could mean a 25 per cent increase on the current price of 75p.
Greeting card firms reacted with fury, warning that the move risks fatally undermining the British postal service.
In a recent submission to regulator Ofcom, the firm repeatedly highlighted that the typical cost of second-class post in most European countries was 94p
The Greeting Card Association (GCA), which represents more than 500 members including retailers and suppliers, will say tomorrow that the 75p second-class stamp is under threat.
It wants the firm to encourage more people to use second-class post and increase revenues that way, rather than putting up the price.
But Royal Mail has been lobbying hard for further increases on top of those it has imposed on the letter-writing public, as bosses seek to generate more cash to stem losses, which are running to hundreds of millions of pounds.
The GCA will this week launch a campaign to persuade MPs to support Ofcom’s efforts to stop the firm from slapping ever-higher prices on long-suffering consumers. It also opposes Royal Mail’s attempts to scrap Saturday letter deliveries.
Royal Mail has been lobbying hard for further increases on top of those it has imposed on the letter-writing public, as bosses seek to generate more cash to stem losses, which are running to hundreds of millions of pounds (File Photo)
The GCA will this week launch a campaign to persuade MPs to support Ofcom’s efforts to stop the firm from slapping ever-higher prices on long-suffering consumers. It also opposes Royal Mail’s attempts to scrap Saturday letter deliveries (File Photo)
Ofcom is proposing to ban Royal Mail from increasing second-class stamps by any more than the rate of inflation for the next five years, and GCA head Amanda Fergusson said: ‘Sending cards is part of keeping families and communities together. Rolling back from what we have is non-negotiable.’
Stamp prices have risen sharply in recent years. The cost of sending a letter first class has increased from 70p in 2019 to £1.25 today, while second-class prices have increased less dramatically but still risen by 23 per cent in that time – to 75p from 61p.
Mr Seidenberg sparked a backlash last week after he said the £1.25 cost of a first-class stamp was a ‘bargain’ compared with takeaway coffee.
Critics say the hikes have come despite the group falling short of its delivery targets, with only 73.7 per cent of first-class mail delivered on time in the 2022-23 financial year, well short of the goal of 93 per cent.