Royal Mail criticised for raising stamp prices again despite ‘failing service’ | Royal Mail
Royal Mail has been criticized for announcing a new increase in the cost of first and second class stamps while providing what Citizens Advice described as a “failing service”.
From April 7, the price of a first-class stamp will increase by 10p, or 6%, to £1.80. The cost of second class service increases by 4p, or 5%, to 91p. Royal Mail attributed the need for a price increase to the “continued increase in the cost of delivery of each letter”.
“We always consider price changes very carefully, balancing affordability with the increasing cost of mail delivery,” said Richard Travers, managing director of letters. “There are 70% fewer letters being sent than there were 20 years ago,” Travers added. “Meanwhile, the number of addresses we deliver to across the UK has increased by 4 million to 32 million.”
But Anne Pardoe, head of policy at Citizens Advice, said stamp prices “cannot be treated as a dial that forces people to dig deeper into their pockets for a failing service, without a clear justification for consumers”.
In the autumn, Ofcom fined Royal Mail £21 million for missing annual delivery targets. This is the third time the 509-year-old postal service has been penalized by the watchdog.
“It’s been more than half a decade since the company met its delivery goals, and people still face a gamble; many are unsure whether their important documents or letters, such as medical appointments, will arrive on time,” Pardoe said.
The charity said that taking into account the new increases, the price of a first-class stamp had risen by 137% since 2020, at £1.80. During the same period, the price of second-class stamps increased by 40%.
Following the £3.6bn acquisition of Royal Mail by Czech billionaire Daniel Křetínsky last year, communications regulator Ofcom gave the company permission to relax its universal service obligation (USO). As a result, second-class mail only needs to be delivered on rotating weekdays rather than six days a week.
Ofcom also reduced Royal Mail’s title distribution targets as part of changes to the USO; This means that starting next month it should only deliver 90% of first-class mail within one business day (instead of 93%) and 95% of second-class mail within three days (instead of 98.5%).
“Things risk getting worse once delivery day cuts and reduced performance targets come into full effect,” Pardoe said. “In this context, it is not possible for Ofcom to resist these increases any longer. Higher prices must come with higher standards.”
Royal Mail delivered Christmas letters and parcels late to nearly 16 million people, according to research by Citizens Advice.
