First Class Stamps Hit £1.80, Up 136% Since 2020

A first class stamp now costs £1.80 after Royal Mail's latest price increase took effect on 7 April — a 10p rise that pushes the cumulative increase since 2020 to 136%.

New analysis projects the trajectory could reach £7 by 2035 if past rates hold. Quote My Wall, which tracked Royal Mail price rises every year since 2020, calculated a compound annual growth rate of roughly 15.5% for first class stamps and applied it forward nine years. That produces an estimated 2035 price of £6.69 — a projection based on historical increases, not a forecast of Royal Mail's actual pricing.

The pace of increase is stark. First class stamps cost 76p in 2020. They now cost £1.80 after eight separate price rises in six years. Second class stamps have climbed more slowly, from 65p to 91p — a 40% rise over the same period.

What do the 2026 postage prices look like?

Royal Mail's current starting prices, as of April 2026:

• First class stamps: £1.80
• Second class stamps: £0.91
• First class parcels: £5.15
• Second class parcels: £3.95

Businesses can cut costs by using a franking machine, which lowers the price per stamp, or by opening a Royal Mail business account.

How are small businesses responding?

Rising postage costs have already forced Fiona McBryde, owner of independent online shop Soap Folk, to raise the minimum purchase value customers need to qualify for free delivery.

"We're reviewing the entire postage strategy and looking at different providers to find a deal," she said.

The costs are reshaping more than pricing. McBryde said the increases affect Soap Folk's packaging choices and customer behaviour alike.

"They buy second class and expect first class service, or buy first class and expect tracked service," she said.

The wholesale side of the business is under review too. "We're looking for cheaper solutions and making everything as small as possible," McBryde said.

Will sellers raise prices or absorb the cost?

A Simply Business survey from earlier in 2026 found 82% of small businesses reported operating cost rises in the past 12 months. Yet only 12% are increasing prices for customers. Most are absorbing costs rather than risk losing sales.

For postage-dependent businesses, the practical levers identified include:

• Choosing the smallest packaging possible without risking product damage
• Setting a minimum spend before customers qualify for free shipping
• Reviewing whether shipping costs push an item's total price beyond what buyers will pay
• Enabling click and collect for local customers

With second class stamps projected to reach £1.51 by 2035 at their historical 5.8% annual growth rate, and high street businesses already struggling, postage inflation looks set to keep testing the margins of small online sellers for years to come.