Royal Mail Will Increase Rates in April

Share this content:
The price of First- and Second-Class stamps in the United Kingdom is set to increase 2 pence, to 32 pence and 23 pence, respectively, beginning in April, Royal Mail said this week. The increases are subject to Royal Mail accepting price controls suggested by industry regulator Postcomm, which will be decided in March.

First-Class stamps rose 2p last April, while the cost of sending a Second-Class letter increased 1p two years ago. First-Class franked mail and items carrying a printed postage impression will continue to get a 1p discount for items up to 60 grams compared to the price of stamped mail.

The price of some business mail services will decrease for heavier items, Royal Mail said, though business mail will continue to subsidize personal letters and birthday cards. Royal Mail currently loses 5p on every First-Class stamped letter and 8p on every Second-Class-stamped letter.

"Now that the UK mail market is open to full competition, it is essential that our prices are more closely aligned to the true cost of collecting, sorting and delivering 83 million items of mail a day to 27 million addresses across the UK," Lorna Clarkson, director of commercial policy and pricing at Royal Mail, said in a statement.

Royal Mail said its prices would get closer to reflecting the cost of handling mail later when its pricing-in-proportion system is introduced Aug. 21. This system will take size and shape as well as the weight of mail into account, meaning that prices will more closely reflect the cost of collecting, sorting and delivering mail. Eighty percent of stamped mail, and 70 percent of business mail, will be unaffected by the PIP price changes, Royal Mail said.

Royal Mail is in the middle of a $17 million campaign to help businesses prepare for the introduction of PIP. Packages with information about the new pricing system were mailed to 500,000 small, medium and large businesses two weeks ago. The mailing follows a series of December mailings to companies in the marketing, publishing, charity and home shopping sectors.

"These information packs are designed to provide businesses with detailed information on the changes along with a size guide template and pricing brochure [that] gives an indication of how current prices will compare with PIP prices, Clarkson said.

The campaign will incorporate television, radio and newspaper advertising as well as information in all 14,500 post offices. Later in the year, Royal Mail will send a mail piece to every address in the UK, both business and residential, to make sure that all customers are prepared for the pricing change.

Melissa Campanelli covers postal news, CRM and database marketing for DM News and To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting


Next Article in Direct Mail

Sign up to our newsletters

Company of the Week

We recently were named B2B Magazine's Direct Marketing Agency of the Year, and with good reason: We make real, measureable, positive change happen for our clients. A full-service agency founded in 1974, Bader Rutter expertly helps you get the right message to the right audience at the right time through the right channels. As we engage our clients' audiences along their journey, direct marketing (email, direct mail, phone, SMS) and behavioral marketing (SEM, retargeting, contextual) channels deliver information relevant to the needs of each stage. We are experts at implementing and leveraging marketing technologies such as CRM and marketing automation in order to synchronize sales and marketing communications. Our team of architects and activators plan, execute, measure and adjust in real time to ensure the strategy is working as needed and change things if it's not.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above