Royal Mail increases stamp prices

The price hike will bring in £15m a month

Prices for postage stamps will rise by 1p from mid April, the Royal Mail has said.

The price of a first class stamp will go up to 28p while the cost of putting a second class letter in the post will go up to 20p on 17 April.

The move comes on the day former football boss Adam Crozier began work as chief executive at the cash-strapped service, a job he has described as the "biggest corporate turnaround programme in the UK".

Services will continue to offer excellent value for money with some of the lowest postage prices in Europe

Royal Mail managing director Jerry Cope

The UK post operator is currently losing £1m a day.

An extra 1p on stamps, which will have to be approved by the postal regulator Postcomm, will bring in about £15 million a month.

The Department for Trade and Industry has recently warned Postcomm that the Royal Mail would not be able to pay back government loans of £1bn without the price increase.

In the UK, roughly two-thirds of the 82 million items posted daily are sent second class.

Royal Mail managing director Jerry Cope said: "Services will continue to offer excellent value for money with some of the lowest postage prices in Europe."