Stamp Price Rise: Royal Mail Increases Cost

The price of both first and second class stamps has increased.

The cost for first and second class stamps has risen by 1p to 63p and 54p respectively.

Sending a large letter has increased by 2p to 95p for first class and by 1p to 74p for second class.

Despite the increase, Royal Mail has insisted the prices still represent among the best value in Europe.

The firm has pointed out the European average for first class letters is 72p and 62p second class.

Announcing the price increase last month, Royal Mail said in a statement: "We have thought carefully about the impact on our customers and our own business before deciding to increase our stamped letter prices.

"We recognise how difficult it has been for householders and businesses in the recent tough economic conditions."

The privatised mail service is in a battle with commercial delivery firms and increased use of electronic communications.

Royal Mail has questioned the sustainability of the company's Universal Service Obligation (USO) under which it must deliver letters to each UK address.

It has accused rivals of "cherry-picking" - concentrating their operations in urban areas - to save on cost though the industry regulator has said it sees no reason to re-examine the obligation.

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