The increase, announced last month, comes into force today and has seen a 4p price increase in second-class stamps to 91p, as well as a 10p increase to second-class stamps.

It means the cost of a first-class stamp has now more than doubled – up 137% – in the past six years after eight rises, while the cost of a second-class stamp has been hiked six times.

The latest rises come after Royal Mail revealed in February that it had missed delivery targets once again in the most recent quarter.

Royal Mail said the stamp rises reflected the continued increase in the cost of delivery as letter volumes fell and the number of addresses increased.

Richard Travers, managing director of letters at Royal Mail, said: “We always consider price changes very carefully, balancing affordability with the rising cost of delivering mail.

“On average, UK adults now spend just £6.50 each year on stamps and there are 70% fewer letters sent than 20 years ago.

“In the meantime, the number of addresses we deliver to has increased by four million to 32 million addresses across the UK.”

Royal Mail argued that despite the price rises, UK stamps still cost less than the European average of £1.56 for a second-class stamp and £1.93 for first class.

Anne Pardoe, head of policy at Citizens Advice, said: “More than half-a-decade has gone by since the company met its delivery targets and people still face a gamble, with many uncertain if their important documents or letters like medical appointments will arrive on time.

“Things only risk getting worse when cuts to delivery days and reduced performance targets come into full effect.

“Against this backdrop, Ofcom simply cannot wave through these increases any longer.

“Higher prices must come with higher standards – increases should be tied to Royal Mail’s performance on the doorstep.”

The last time Royal Mail met its annual target for delivering first-class post on time was in 2019-20.

The firm – whose owner International Distribution Services (IDS) was bought last June for £3.6 billion by Czech billionaire Daniel Kretinsky’s EP Group – repeated its call to “urgently move forward” with reforms to the service.

Nexfibre has revealed plans for a major broadband upgrade with the multimillion investment in digital infrastructure in the area.

The wholesale full-fibre network provider acquired Netomnia earlier this year, and the deal will give Oxford residents faster access to full-fibre broadband.

This fibre network will be available to all internet service providers, ensuring local people have a wide choice of broadband services.

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Following approval, homes and businesses connected to Virgin Media O2’s network will be upgraded to full-fibre connectivity.

Rajiv Datta, Chief Executive Officer of Nexfibre, said:  “We are committed to delivering high-quality connectivity to everyone across the country.

“Full-fibre broadband is a crucial driver of economic growth, and our investment in Oxford will help deliver better access to education, jobs, and opportunities that can transform lives and uplift entire communities.”

The transaction as a whole is said to be unlocking £3.5bn of international investment, providing a boost to the UK economy, as well as ensuring millions of network upgrades take place across the country.

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As part of its broader investment in the area, Nexfibre also partners with UK Youth to offer free full-fibre broadband to youth centres across the UK to help tackle digital poverty.

Access to quality full-fibre broadband and better connectivity is critical to boosting the prospects of disadvantaged young people and stoking economic growth.

Up to seven youth centres in Oxford could benefit from the partnership.

Nexfibre’s network currently covers more than 2.6 million premises across the UK, and the combined network’s full-fibre footprint is expected to reach around 8 million premises by the end of 2027.

GoCardless has published research indicating that most UK recurring-revenue businesses view commercial Variable Recurring Payments as their preferred alternative to legacy payment methods. The findings indicate strong interest among businesses in sectors expected to be included in the initial rollout.

The study surveyed 489 UK business leaders at companies that accept recurring payments and found broad frustration with existing systems, especially cards. Nearly three-quarters, or 73%, reported ongoing pain points with card payments, while 42% said they spend more than three hours each week dealing with related issues.

According to the research, card-related administration, fraud and other overheads cost merchants an average of 3.5% of monthly revenue. GoCardless presents commercial VRPs that use open banking infrastructure for recurring payments as a possible solution for industries such as utilities, financial services, and telecommunications.

Card friction

The figures highlight the operational burden on businesses that rely on recurring billing. Time spent resolving failed payments, handling card expiry and managing fraud checks can affect revenue collection and customer retention, particularly in sectors where regular billing is central to the business model.

Among decision-makers in the first phase of the commercial VRP rollout, 89% said the technology would significantly improve cash flow. Another 91% expected it to reduce operational costs.

The initial phase is focused on regulated and lower-risk sectors, including utilities, financial services, insurance, government, charities, and rail and travel. A later phase is expected to extend to broader eCommerce, retail and digital subscription markets.

The survey also found that 49% intend to be early adopters of commercial VRPs. This suggests many companies are willing to move quickly if the product is available through familiar payment channels and supported by banks.

Adoption conditions

The findings also point to practical concerns around execution. When asked what would encourage adoption or greater use of open banking payments, 41% of businesses cited access through their existing payment provider, while the same share pointed to wider consumer bank coverage.

This suggests demand may depend less on awareness than on delivery. Businesses appear to want a route into commercial VRPs that does not require major changes to their payment operations, along with confidence that enough banks will support the payment method.

A separate survey of 2,000 UK adults suggested there is also consumer interest, particularly among younger users. Overall, 38% of respondents said they were open to using the technology, rising to 60% among Gen Z.

Interest was strongest for essential household services. Some 46% said they would be willing to use commercial VRPs for energy bills, while 35% said the same for telecoms payments.

Industry shift

The research comes as regulators and industry participants work through a phased introduction of commercial VRPs in the UK. Supporters see the model as a way for consumers to authorise recurring bank-to-bank payments with more flexibility than traditional direct debit arrangements, although the rollout remains limited to selected sectors at this stage.

For providers of recurring services, the appeal lies in reducing failed collections and reliance on card networks. For consumers, the pitch is direct account-based payments for regular bills and subscriptions, though broad uptake will depend on trust, bank participation and ease of use.

Shaun Puckrin outlined GoCardless’s view of the market in a statement accompanying the findings.

“The numbers don’t lie: the era of settling for high-friction, legacy payment methods is over. We’re seeing openness and demand from both sides of the checkout for a more intelligent, bank-led alternative. As a company that has specialised in bank payments for 15 years, it’s incredibly exciting to see the industry catching up and working together in the live testing phase to prove out commercial VRPs and we’re confident that our solution, Recurring Pay by Bank, makes adoption viable and highly effective today,” said Shaun Puckrin, Chief Product Officer, GoCardless.