Proactive Investors - Stamps are increasing in price again, with the cost of the first-class version rising to £1.25 from £1.10 - the third increase in 18 months.
Royal Mail (LON:IDSI), owned by International Distributions Services PLC, cited increasing cost pressures and the challenging economic environment for the hike.
Drawing criticism from various areas, charity Citizens Advice urged regulator Ofcom to hold Royal Mail accountable for these "rocketing prices" amidst households dealing with rising costs.
Ofcom defended the need for pricing flexibility, claiming it was important to ensure the postal service's viability, given the evolving support service industry where people send fewer letters and receive more parcels.
Matthew Upton, policy director at Citizens Advice, claimed Ofcom’s decision was "letting the company get away" with price rises despite its "poor service".
Upton said: "Royal Mail holds a virtual monopoly on an essential public service that millions of people rely on, but despite missed delivery targets across the country this summer, Royal Mail has still chosen to hike prices."
Advocating for reform of the Universal Service Obligation, which requires the postal service to deliver six days a week to 32 million addresses, Royal Mail believes changes should be made due to declining letter volumes and rising addresses.
Letter volumes have decreased from 20 billion in 2004-05 to seven billion in 2022-23, the company revealed.
An Ofcom spokesperson said: "Ofcom caps the price of a second class stamp, to make sure an affordable option is always available, especially to support people on lower incomes.
"However, the postal market is rapidly evolving, as people send fewer letters and receive more parcels. So Royal Mail needs flexibility when setting first class stamp prices, to make sure the universal postal service can continue."