Royal Mail has announced the price of both first and second class postage stamps will increase from 1 January 2021.
The price hike comes just nine months after the previous price rise, but Royal Mail says the increase will allow the company to continue to “deliver and sustain the Universal Service”.
How much extra will stamps cost?
First class stamps will increase from 76p to 85p - up by 9p - which is a 21 per cent jump since March.
Second class stamps will also increase by a penny to 66p, after rising to by 4p to 65p on 23 March.
The price hike means that first and second class stamps will cost more than double what they did back in 2010.
In 2010, first and second class stamps cost 41p and 32p respectively. Ten years prior to this, in 2000, they cost 27p and 19p.
‘2020 has been a challenging year for Royal Mail’
Royal Mail says the coronavirus pandemic has cost the firm £85million, due to the costs of PPE, absences, overtime and bank staff, but that the price rise will allow them to continue delivering their service.
Royal Mail said: "The reduction in letter volumes has had a significant impact on the finances of the universal service which lost £180m in the first half of the year.
"This demonstrates the need for change in the universal service. We are working tirelessly to deliver the most comprehensive service we can in difficult circumstances as the coronavirus pandemic continues to impact our operation."
Nick Landon, chief commercial officer at Royal Mail, said: "Like other companies, 2020 has been a challenging year for Royal Mail.
"Our people have worked tirelessly to keep the UK connected throughout the pandemic and associated restrictions.
“These price increases will help us continue to deliver and sustain the Universal Service in challenging circumstances."
The stamp price hike comes amid discussions regarding permanently shelving non-urgent Saturday deliveries, which Ofcom has said could save Royal Mail up to £225million a year by 2022-23.