Royal Mail defends stamp price hike as rises come into full force
A HIKE IN the cost of stamps came into force yesterday, as the Royal Mail attempts to offset declining mail volumes and stem its losses.
The cost of a first class stamp has increased by almost a third to 60p, while the price of a second class stamp has jumped 14p to 50p – almost double what the stamps would have cost in 2000.
Royal Mail, which announced the price rise last month, defended the move, saying it was necessary to keep its six-day universal postal service and cover fuel costs.
“We know how hard it is for households and businesses when our economy is as tough as it is now. No-one likes to raise prices in the current economic climate but, regretfully, we have no option,” chief executive Moya Greene said at the time of the announcement.
The company has lost £1bn over the last four years, including a £120m loss in its letters business last year, due to a 25 per cent decline in mail volumes since 2006 thanks to the popularity of emails and texts.
Meanwhile the number of delivery addresses has risen from 27m in 2003 to 29m today, meaning postal workers are posting less mail to more locations.