The cost of a first class stamp is set to jump to 95p.
Royal Mail announced the changes, including that second class stamps will go up by 2p to 68p.
These new prices will come into effect on April 4.
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This comes as the cost of living continues to rise with record highs of gas prices.
The UK is being warned that it is entering a cost of living crisis due to the rising price of energy, fuel and food prices.
National Insurance is also rising in April and Bank of England says the rate of inflation is expected to reach 7 percent next month.
As Hull Live reports, Royal Mail said there has been a long-term decline in letter usage, coupled with rising inflation.
This comes as letter volumes have fallen by more than 60 percent since their peak in 2004/5 and then by a further 20 percent since the start of the pandemic.
Nick Landon, chief commercial officer at Royal Mail said: “We understand that many companies and households are finding it hard in the current economic environment, and we will always keep our prices as affordable as possible. Whilst the number of letters our postmen and women deliver has declined from around 20 billion a year to around seven billion since 2004/5, the number of addresses they have to deliver to has grown by around 3.5 million in the same period.
“We need to carefully balance our pricing against declining letter volumes and increasing costs of delivering to a growing number of addresses six days a week. As customer needs change and we see a greater shift from letters to parcels, it is vital that the universal service adapts to stay relevant and sustainable.
“These price changes are necessary to ensure we can continue to maintain and invest in the one-price-goes-anywhere universal service for future generations.”
It is the latest price rise to affect families as the cost of living crisis continues.
