Increase in postal costs from 30 April

Royal Mail has announced that from 30 April a first-class stamp will go up from 46p to 60p and a second-class stamp from 36p to 50p. Mail franked in-house will increase in price from 39p to 44p for first class and 28p to 31p for second-class post. VAT will also be charged on addressed direct mailings from 2 April, which the Direct Marketing Association, which represents direct mail firms, estimated in January would cost charities £17.9m a year. VAT has been charged on unaddressed bulk mail since 31 January 2011. Stamps do not attract VAT. Products including mail redirection and direct mail now attract VAT because of changes in the way they are regulated by the Postal Services Act 2011. Organisations that have accounts with Royal Mail will be able to buy stamps VAT-free, which will help those organisations that cannot reclaim VAT.