First-class stamps in the UK are set to increase by 30p due to “very real and urgent” financial pressures faced by Royal Mail. The hike will come into effect from 7 October, taking the price of a first-class stamp to £1.65, while second-class stamps will remain at 85p. The company attributes the increase to declining letter volumes and escalating business expenses incurred while maintaining a universal service in which one price covers deliveries anywhere in the UK.
Royal Mail has claimed that these circumstances require changes to the terms of the service it is required to offer under UK law. Presently, this requires it to deliver letters every day except Sundays and parcels every day except Saturdays. The company argues that such obligations should be reformed to better correspond with the changes that stem from evolving trends in the UK postal market.
“We always consider price increases very carefully. However, when letter volumes have declined by two-thirds since their peak, the cost of delivering each letter inevitably increases,” stated Nick Landon, Royal Mail’s chief commercial officer. Despite these challenges, the company aims to continue to provide vital services that maintain the UK’s universal postal service. Nonetheless, the regulatory framework will require tweaking to enhance the overall performance of the postal service in the UK.
The announcement comes when numerous companies are confronted by tremendous stress caused by the COVID-19 pandemic. The pandemic has witnessed significant growth in online shopping and the usage of digital communication solutions, leaving postal services worldwide trying to reconcile changes in their business models in response to the new normal. The decline in conventional postal services could have long-term consequences for sectors such as advertising and publishing
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