Stamp prices are to rise further to pay for the Royal Mail’s pensions black hole after the postal regulator bowed to last-minute pressure from the group yesterday.
Postcomm said that Royal Mail could add an extra penny to stamp prices to help with an expected rise in its deficit to £6bn
The move, which means that the price of a first class stamp could rise from 30p to 37p within four years, marks a U-turn by the regulator, which had previously set out caps on price increases, which it described as “final”.
Nigel Stapleton, chairman of Postcomm, said that the latest proposals would “enable Royal Mail to invest in the business, meet its obligations to the pension fund and build on these achievements going forwards”.
Next month, the price of stamps will increase to 32p in the first phase of increases, if Royal Mail accepts the pricing programme.