Royal Mail to raise cost of stamps from end of March

First Class stamps to cost 67p and Second Class stamps 58p

Royal Mail has been battling a decline in letter volumes for years (Reuters)

Royal Mail is increasing the cost of First and Second Class stamps by 2p from the end of March.

The postal service said that while it understands that many companies and households are struggling in the current economic environment, the changes are necessary to ensure the sustainability of the service.

From 26 March, the price of a First Class stamp will rise by 2p to 67p and the price of a Second Class one by the same amount to 58p.

Royal Mail maintained that even after the hike, its stamps remains among the best value for money in Europe. Citing its own research, it said that the postage cost for the average European First Class letter, weighing up to 100g, is the equivalent of 94p while the average price across the region of a Second Class stamp is the equivalent of 74p.

“The UK also has one of the highest quality of service specifications of any major European country,” it said.

Royal Mail has been battling a decline in letter volumes for years while its parcel market has been challenged by fierce competition from the likes of Amazon.