A first class stamp is to cost more than £1 following an inflation-busting increase, Royal Mail has announced.
From April 3, the price of a first class stamp is set to rise in price by 15p, from 95p to £1.10.
The price of second class stamps will also rise by 7p, from 68p to 75p.
The 16% increase is way above the current level of inflation of 10.1% and follows the 10% increase from last year.
Royal Mail has said the decision to up the price was made after "careful consideration" and in light of the 25% drop in letter volumes since the Covid-19 pandemic.
It also said the price rise was necessary to keep its Universal Service agreement sustainable, whereby it pledges to deliver anywhere in the country for the same price.
Commenting on the price rise, Nick Landon, chief commercial officer at Royal Mail said: “We have to carefully balance our pricing against a continued decline in letter volumes and the increasing costs of delivering letters six days a week to an ever-growing number of addresses across the country.
“We are seeing a fundamental change in consumer needs with a greater shift in demand from letters to parcels. It is vital that the Universal Service adapts and stays both relevant and sustainable.
"We need to make these price changes to ensure we can continue to maintain and invest in the one-price-goes-anywhere Universal Service for years to come.”
By using a first class stamp, your letter should reach its intended address the next day.
With a second class stamp, it usually takes around two to three working days to arrive, including Saturday.
Citizens Advice has responded to the news and said that the price hikes to first-class stamps represent a 64% increase over the last five years.
Almost one in five people are already struggling to meet the cost of second class postage stamps.
The group also criticised the changes as it recently uncovered "significant" letter delays for the third year running during the 2022 festive period.
The charity estimates 60% of UK adults were hit by letter delays, with 6.2 million people missing important mail like health appointment letters during Christmas last year.
Matthew Upton, director of policy at Citizens Advice, said the "record breaking" price rises "couldn’t be coming at a worse time for consumers".
He said: "Royal Mail is choosing to hike prices at a time when millions are missing important letters, thanks to post delays.
"Nobody should be paying more for this kind of subpar service."
Citizens Advice have called on Ofcom to "hold Royal Mail to account" claiming the regulator at the moment is letting Royal Mail "get away" with rising prices and missing targets.
Matthew added: "Enough is enough, it's time for the regulator to act.”
