UK letter and parcel deliverer Royal Mail is to cut prices during the festive season in an attempt to maintain its market position in the face of growing competition.

From 20 October until mid-January smaller parcels will cost £2.80 to send to UK addresses second class.

Royal Mail has erased the price distinction between 1kg and 2kg packages, meaning items in the 1kg-to-2kg range will cost the same to send as smaller items – a saving on £1 per unit sent.

It is potentially good news for the growing army of small ecommerce and mail order businesses across the UK who are hoping to cash in on the Christmas rush.

Most retailers make the bulk of their sales in the build-up to Christmas and during the January sales, so price cuts for deliveries could be welcome news.

Nick Landon, managing director of Royal Mail Parcels, said: “We are pleased to further simplify our stamped parcels portfolio to provide great value and support consumers and small businesses.

“To launch the new small parcel format we are introducing a festive price promotion that will benefit customers sending Christmas presents to friends and relatives, marketplace sellers and smaller businesses selling gifts online.”