STAMP IT OUT
Martin Lewis warns it’s your ‘last chance’ to stock up on stamps before 22% price hike next week
Royal Mail has frozen the cost of second-class stamps at 85p until 2029
MARTIN Lewis has warned Brits to stock up on first-class stamps before next week's price hike.
The price of first-class stamps will rise by 30p to £1.65, the second rise in a year, Royal Mail has confirmed.
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The increase will be introduced from next Monday, October 7.
Martin Lewis is now urging Brits to bulk-buy first-class stamps in advance, pointing out they are "still valid after the hike".
He said: "For years, every time stamps go up in price I've suggested people stock up and bulk-buy in advance, as provided the stamp doesn't have a price on it and instead just says the postage class, it's still valid after the hike.
"So you may as well stock up now, even if it's just for Christmas cards for the next few Christmases."
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The founder of Money Saving Expert has also warned Brits against buying fake stamps when stocking up.
He recommended buying from reputable high street stores and making sure to keep the receipt.
Stamps can also be bought directly from the Royal Mail online shop, but you have to spend £50 to get free delivery.
In April, the UK postal service announced it had paused the £5 penalty for anyone receiving a letter with a fake stamp.
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However, you still risk facing charges if caught sending mail with counterfeit stamps.
Royal Mail has introduced a new stamp scanner, available for free via their app, to check if stamps are genuine.
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The price increase for first-class stamps is the second one this year after they rose by 10p to £1.35 in April and by 10p to 85p for second class.
The company has frozen the cost of second-class stamps at 85p until 2029 in a bid to keep the sending of letters affordable.
Royal Mail says it has tried to keep price increases as low as possible in the face of declining letter volumes, and inflationary pressures.
When announcing the price rise earlier this month, it also cited the costs associated with maintaining the so-called Universal Service Obligation (USO) under which deliveries have to be made six days a week.
Royal Mail said letter volumes have fallen from 20billion in 2004/5 to around 6.7billion a year in 2023/4, so the average household now receives four letters a week, compared to 14 a decade ago.
The number of addresses Royal Mail must deliver to has risen by 4million in the same period meaning the cost of each delivery continues to rise.
Nick Landon, Royal Mail’s chief commercial officer, said: "When letter volumes have declined by two-thirds since their peak, the cost of delivering each letter inevitably increases.
"The universal service must adapt to reflect changing customer preferences and increasing costs so that we can protect the one-price-goes anywhere service, now and in the future."
How prices have changed
Royal Mail previously raised the price of first-class stamps from £1.10 to £1.25 last October, before boosting them again in April.
Right now, a first-class stamp costs £1.35, which covers the delivery of letters up to 100g.
Historically, the cost of stamps has seen a steady increase over the years, reflecting inflation and operational costs. For example, in 2000, a First Class stamp was priced at 41p.
A second-class stamp is priced at 85p and also covers letters up to 100g.
The stamps can be bought individually if you buy them at a Post Office counter.
Stamp Price Changes
Royal Mail has announced a price hike by 22 per cent for first-class stamps, with the cost of second-class stamps remaining the same.
First - standard:
Current price - £1.35
Price from Monday 7 - £1.65
Price rise - 30p (+22 per cent)
First - large:
Current price - £2.10
Price from Monday 7 - £2.10
Price rise 50p (+24 per cent)
Second - standard:
Current price: 85p
Price from Monday 7 - 85p
No change
Second - large
Current price: £1.55
Price from Monday 7 - £1.55
No change
Otherwise, you can typically buy them in sets of multiple stamps.
The first class service typically delivers the next working day, including Saturdays, while the second class service usually delivers within 2-3 working days, also including Saturdays.
For larger letters, the cost of a first-class stamp is £2.20 for items up to 100g, and a second-class stamp for the same weight is £1.55.
Parcel delivery prices vary based on size and weight, starting from £3.69 for small parcels.
Additional services include the "signed for" option, which requires a signature upon delivery and adds an extra level of security.
The cost for first class signed for is £3.05, and for second class signed for, it is £2.55.
The "special delivery" service guarantees next-day delivery by 1pm with compensation cover, with prices starting from £7.95.
Royal Mail periodically reviews and adjusts stamp prices, so it is advisable to check the latest rates on their official website or at your local post office.
Other Royal Mail changes
Royal Mail has urged the Government and Ofcom to review its obligations, arguing that it is no longer workable or cost-effective, given the decline in addressed letter post.
In its submission to Ofcom in April, it proposed ditching Saturday deliveries for second-class post and cutting the service to every other weekday.
Lindsey Fussell, Ofcom's group director for networks and communications, said: "If we decide to propose changes to the universal service next year, we want to make sure we achieve the best outcome for consumers.
"So we're now looking at whether we can get the universal service back on an even keel in a way that meets people’s needs.
"But this won't be a free pass for Royal Mail – under any scenario, it must invest in its network, become more efficient and improve its service levels.”
Royal Mail owner International Distribution Services (IDS), which agreed to a £3.57billion takeover by Czech billionaire Daniel Kretinsky in May, said "change cannot come soon enough" to the UK’s postal service.
Royal Mail also ousted old-style stamps and replaced them with barcoded ones last July.
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The business said the move would make letters more secure.
Anyone who still has these old-style stamps and uses them may have to pay a surcharge.
How stamp prices have risen over time
The cost of a book of stamps has risen gradually over the past few decades.
First-class stamps were worth 60p in the early 2010s and are now priced at £1.35.
Second-class stamps were also worth 50p in the early 2010s but now sell for 85p.
First-class stamps cost 95p at one point in 2023, before being hiked to £1.10 last April. They were then raised by 15p to £1.25 last October.
The latest hike on first-class stamps to £1.65 in October means they will have risen by a staggering 43% since just last year.
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