How much have first and second class stamps increased in price since 1980?

The price of first- and second-class stamps has risen again this year, just months after industrial strikes brought the postal system to a standstill.

Royal Mail delays appear to have increased this year, with This is Money highlighting households waiting weeks to receive letters in bundles.

It has led to accusations that it is prioritizing parcels over letters, which Royal Mail has denied, as it continues to raise prices.

We look at how much the price of second class and class stamps has risen and whether it has outpaced inflation.

Why have stamp prices increased?

In April, Royal Mail increased the price of first class stamps from 95p to £1.10, while second class stamps rose by 10 percent, from 68p to 75p.

It took the unusual step of announcing further price increases in October, increasing standard first class stamps from £1.10 to £1.25. Second class stamps remained at 75p.

Royal Mail has attributed the price increases to increasing cost pressures and the universal service obligation (USO).

The country has long sought a reform of the USO, which would require it to deliver letters six days a week (Monday to Saturday) and five days a week (Monday to Friday) to any address in Great Britain. -Britain.

She states that this is untenable because the number of letters is decreasing.

Letter volumes fell by 9 percent last year and total addressed letter revenues for 2022/2023 were £3.6 billion, down 14.4 percent in real terms year-on-year.

While Royal Mail is raising prices, its letter delivery performance has floundered. The company was recently fined £5.6 million by Ofgem for failing to meet its targets for delivering first and second class mail by 2022/2023.

How much have stamp prices increased?

Since 2022, Royal Mail has increased the price of first and second class stamps four times.

The price of a first class stamp rose from 85p to 95p from January to April in 2022, while the price of a second class stamp rose by 2p to 68p.

The price of a first-class stamp has increased by 64 percent since March 2020 and by 15 percent for a second-class stamp. The overall inflation rate since then is 17.92 percent.

Since privatization in 2015, the price of a first-class stamp has almost doubled.

Since 2005, when Royal Mail changed its standard letter weight from 60 grams to 100 grams, the price of a first stamp has risen by 316.6 percent, from 30 cents to £1.25.

The price of a second-class stamp increased by 250 percent, from 21 cents in 2005 to 75 cents in 2023.

In 2000, the price of a first and second class stamp was 27 cents and 19 cents, and these have increased by 362.9 percent and 294 percent respectively. By comparison, the overall inflation rate since 2000 is 106.35 percent.

Since 1980, when first and second class stamps cost 12 and 10 cents, prices have risen by 941 percent and 650 percent. The overall inflation rate is 502 percent.

There is also a widening gap between the price of first and second class stamps.

In 2000 there was only an 8 cent difference between the two, which started to widen. In 2020 there was a difference of 11 cents, which increased to 19 cents in January 2021.

In 1980 there was only a 2 cent difference between stamps, which has increased to a huge difference of 50 cents in 2023.

There is a cap on the price of second class stamps, which increases every April, to ensure that an affordable, universal postal service is available to all.

However, due to delays, many households do not receive their mail on time six days a week.

Ofgem's report showed that Royal Mail delivered 95.5 percent of second class mail on time, below the target of 98.5 percent. First-class performance was even worse: 82 percent, well below the 93 percent target.

> Use our historical inflation calculator to show how prices have changed

Will stamp prices rise again?

Given the rate at which stamp prices have risen in recent years, there are concerns that they could rise again.

Campaigners have warned that the cost of a second-class stamp could rise to 94p next year.

In a submission to regulator Ofcom, Royal Mail repeatedly emphasized that the typical cost of second-class mail in most European countries is 94 cents.

Campaigners fear this means Royal Mail could raise its prices to similar levels. It would represent an increase of 25 percent from the current price of 75 cents

The Greeting Card Association wants Royal Mail to encourage people to use second-class mail and thus increase revenues, rather than raising prices again.

The GCA's intervention came after Royal Mail's German boss Martin Seidenberg came under fire for controversially saying stamps remained a “bargain” despite growing frustration over rising prices and poor service.

Kevin Hollinrake, Minister for Enterprise, Markets and Small Business, has warned Royal Mail that three price increases for first class stamps since April last year are putting the public off sending letters and greeting cards.

Hollinrake told the Mail on Sunday: 'People will instead rely on other forms of communication, such as email, which is already happening. Royal Mail must therefore proceed with caution.'