‘Price of second class stamp could rise by 50 per cent’

Royal Mail will be given the power to charge an unlimited price for first class stamps while the cost of sending a letter second-class could rise by more than 50%, under plans announced yesterday.

There should be no cap on prices for the vast majority of Royal Mail’s services, including business post, bulk mail, and large letters and parcels sent second class, the regulator, Ofcom, said.

The proposed seven-year deal, which could come into force in April, would see the cost of a second-class stamp rise from the current 36p to between 45p and 55p, a possible 53% increase.

There would be no limit on the price of a first class stamp, which currently costs 46p. One option could be to bring it more closely into line with countries such as Denmark, where a first-class stamp costs 67p, or Italy, where a next-day delivery costs 69p.

Daily Telegraph 26th October 2011

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