The cost of stamps could go on to way up sharply, with Royal Mail refusing to order out an contingent 1 assign for a first-class stamp.
The pierce follows the postal service 's statement that the cost of a first-class stamp will way up from 46 pence to 60 pence next month. Second-class stamps will way up from36 pence to 50 pence .
The rises follow the preference by Ofcom, the postal regulator, to eliminate the hat on what Royal Mail can assign for first-class stamps. The cost of second-class stamps will still be regulated.
Ofcom mentioned that Royal Mail has been since the power to set its own first-class stam p prices to make it more blurb and"safeguard" the concept postal service.
Moya Greene , the arch senior manager of Royal Mail, mentioned she would have "avoided" raising prices if she could have. However she mentioned that the postal service in the UK has been in "peril" for a number of years.
Interactive chart: First (OTC BB: FSTC.OB - headlines ) -class and second-class stamp prices in the UK
Interactive chart: First-class and second-class stamp prices in the UK
She (SNP: ^SHEY - headlines ) refused to say how high the cost of a first-class stamp could finally go.
Asked either the cost of a first-class stamp could strike 1, she said: "I wouldn't wish to obtain in to conjecture about that. If you loo at the cost of a singular outing on a bus, or a chocolate bar, or the cost of a journal you are evidently affordable.
"I do not must be assign 1 now."
She updated that there is not an "affordability issue" with stamps because the median domicile spends 50 pence a week on stamps. This compares with 10.50 on telecoms and internet, she said.
The pierce to giveaway Royal Mail to set its prices is approaching to lead to the privatisation of Royal Mail. Mr Greene mentioned that it could be sole by the Government by the second entertain of 2014.
"I do not regard it counts who owns the Royal Mail, either it is Her Majesty's Government or a organisation of allowance supports or sell investors. The thing is this. We can't be s! uccessfu l if the stamps are labelled as well low, you do not have access to capital, you are change piece insolvent, or the revenues are capped so you are not able to to compete. We have feel safe the future of the service," mentioned Ms Greene.
Customers have been strike by high cost rises before. In 1940 there was a 66 per cent increase. In 1975, the first-class and second-class stamps rose by 55 per cent and 58 per cent respectively.