1st Class Stamp To Cost 1.70p From 7 April

Don’t forget that since it was privatised Royal Mail (what a dreadful misnomer) has to make enough profit to satisfy shareholders as well as to cover costs.

As NIC can ONLY be be used to fund the NHS or contributory benefits, what would you suggest?

In 2023/24, NIC raised £179 billion. Only £33.5 billion of that was was allocated to the NHS. Over £124 billion was paid in State Pension including the Christmas bonus. The rest goes to pay other contributory benfits such as maternity and bereavement benefits, the contributory element of ESA and JSA and ancilliary costs.

The total expenditure on contributory benefits was £130 billion so State Pension was over 95% of that.

In addition, the National Insurance Fund must keep in reserve at least one-sixth of it estimated annual expenditure against the risk of any shortfall in the fund.

The cost of paying the State Pension is expected to rise to £140 billion by 2027 so at least £24 billion needs to be kept in reserve. The rise in NIC in Reeves’ Budget was estimated to raise £25 billion.

In a statement Royal Mail blamed the need for price increases on rising costs. “We always consider price changes very carefully but the cost of delivering mail continues to increase,” said Nick Landon, its chief commercial officer. “A complex and extensive network of trucks, planes and 85,000 posties is needed to ensure we can deliver across the country.

A decade ago Royal Mail was delivering 20bn letters a year but that has shrunk to 6.7bn and could drop to 4bn within four years. Over the same timeframe the number of addresses it serves has risen by 4m, meaning the cost of each delivery continues to rise, it said. (Source The Guardian)

It isn’t only the rise in NIC which is triggering the rise in the price of a stamp but many other costs along with the diminishing use of the service.

Ilovecheese

Isn't privatisation wonderful.

Isn't making tax rises for Employers wonderful. Then they have to cut back on something, services maybe, employees maybe, not replacing them after someone leaves. So you see where we are!!

I send everything second class nowadays. Has worked well thus far.

Isn't privatisation wonderful.

I don't buy first class stamps now - cards are posted early to arrive in time with a second class stamp. Most people I know do the same - so it is likely perhaps that the increase is to try to make up a shortfall through lack of purchase of the first class stamps. It seems to be a pointless downward spiral - ecards are sent by many people, and putting prices up to a ridiculous figure seems a bad business decision.

It is a good excuse for us all to stop sending Birthday and Christmas cards. So Card Retailers will bear the brunt of this.

I find there’s no point in paying for first class postage. I sent a friend’s birthday card recently with a 1st class stamp. I allowed 5 days in advance of her birthday thinking better early than late. It was late 😡 The card arrived 2 days after her birthday.

Similar experience a few months ago with my son’s birthday card. 11 days with a first class stamp and arrived several days after his birthday.

On the rare occasions I need to post anything I now use 2nd class stamps.

Indeed. The increased NIC bill must be far too big to be absorbed. Thanks Rachel.

Barleyfields

Anything to do with increased employer’s NICs I wonder?

They are a large company with many 1,000’s of employees, so wouldn’t be surprised.

Anything to do with increased employer’s NICs I wonder?

I think it’s worldwide Pittcity my son in NZ only gets deliveries three times a week and has been told the postmen will be gone within two years

Outrageous increase by Royal Mail.

I read that the Danish mail are no longer going to deliver letters and all the post boxes are being removed. They will only handle parcels. Necessary letters can be sent by other couriers.
Looks like Royal Mail are heading the same way.