The increases, which are below inflation, apply to Royal Mail services already open to competition from rival carriers and are within the Retail Price Index limits permitted within the terms of the Licence from industry regulator Postcomm.

Royal Mail’s managing director mails markets, Gillian Wilmot, said: “Our services continue to represent genuine value for money. In real terms First Class prices have fallen by 8.5 per cent and Second Class by more than 16 per cent over the past five years.

“And UK rates remain very low compared to domestic postage rates charged in other EU countries.

“Our rates also compare very well with our competitors. Royal Mail Special Delivery prices, for example, will after July start at just £3.65 for a guaranteed next-day delivery to anywhere in the country. Similar services from many courier companies cost around £15 or much more for packages to more remote areas.”

Inland mail over 350g is affected by the changes along with Royal Mail’s Special Delivery service, some business mail and parcel services. Increases for these individual services range from one per cent to five percent. The Mailsort and Presstream range of business products are not affected. The overall effect on Royal Mail prices is 0.7 per cent.