Annual Stamp Price rises for 2012
We have announced our stamp prices for 2012. The new prices will come into effect from 30 April.
We know how hard it is for households and businesses when our economy is as tough as it is now. We have thought very carefully about the impact on our customers and on our own business, before deciding to raise our prices.
What are the increases?
The price for a First Class stamp for a standard letter will rise from 46p to 60p.
The price for a Second Class stamp for a standard letter will increase from 36p to 50p. The cost of a Large Letter stamp up to 100 grams will rise from 75p to 90p for First Class and from 58p to 69p for Second Class.
The price for First Class packets weighing up to 750g will be £2.70. For Second Class packets the price will be £2.20. There will be two weight steps up to 1kg instead of five. The changes better reflect the cost of handling packets which often cannot be delivered through the letterbox.
Briefing material is being circulated to all colleagues with an email address. There will also be information on Royal Mail TV and business TV screens, as well as on the intranet and myroyalmail. It is important that everyone understands why we are doing this and supports Royal Mail’s position and the USO.
Protecting the Universal Service
Ofcom has said that our financial position puts the viability of the Universal Service at severe risk. We have made a loss on our core mails, including packets, activities of almost £1 billion over the last four financial years published. Price increases are therefore needed to put the Universal Service on a sound, sustainable and secure basis.
Postal service standards in the UK are high and increases are needed to pay for them. Our next day target of 93% is the highest for any major EU country. We also deliver six days a week while many EU countries only provide a five day delivery service.
A high quality service
Service standards in the UK are appreciably higher than in many other EU countries. Royal Mail is required to deliver six days a week; the EU minimum obligation is five days. Royal Mail’s 93% next day delivery target is also the highest for any major European country, e.g. France’s minimum standard is 84%. A high, fixed cost network is required to maintain this high quality service, especially given the legal requirement to deliver to 29 million addresses six days a week. Price increases are needed to sustain this high quality service.