Rise in cost of stamps will take its toll on the over-65s

ROYAL Mail chiefs were accused of penalising pensioners yesterday after announcing inflation-busting stamp price rises of up to 8.6 per cent.

The postal company was attacked for ignoring older people who rely on letters.

From the end of next month, the price of a first-class stamp will go up 6p to 76p and the price of a second-class stamp will rise 4p to 65p.

Stephen Agar, Royal Mail managing director of letters, said the increases were “necessary” because the business was operating in difficult market conditions.

But Caroline Abrahams, charity director of Age UK, said: “Many older people who are not online rely on the post to pay bills, send cards and hear from loved ones.

“It’s really important that postal services stay affordable because otherwise some older people could be left high and dry.”

Mike Cherry, chairman of the Federation of Small Businesses, said: “When the cost of doing business is already rising, this latest rise in stamp costs for letters and for parcels is just another expense.”

Yesterday’s news came two days after the monthly Consumer Prices Index of 1.8 per cent was published.

The stamp price rises are effective from March 23, with the 8.6 per cent rise in the most expensive category.

Mr Agar predicted that the Royal Mail was facing financial losses for the coming year, but wanted to invest nearly £2billion.

He said: “We are operating in a tough market at present, under the threat of making a loss by 2021.

“These price increases will help us maintain the quality of service that is expected by our customers, while supporting the universal service.”