Royal Mail pushes price of a PO Box up 80%

[TrueBlueTerrier]

http://www.telegraph.co.uk/finance/news ... -80pc.html" onclick="window.open(this.href);return false;

The cost of renting a Post Office box has increased by almost 80pc in a year in the latest sign that the Royal Mail is pushing through inflation-busting price increases to bolster its precarious finances.

Invoices issued by the Royal Mail show the annual cost of renting a PO Box has increased to £170, up from £95 the previous year.

PO Boxes are used by tens of thousands of small businesses, as well as individuals keen to keep their residential address private, or those who travel away from home a lot. The jump represents a 170pc increase over two years, given boxes cost £62.85 in 2009.

Small business leaders criticised the sharp increases as customers attacked the "extortionate" rises despite receiving no extra "services". John Walker, chairman of the Federation of Small Businesses, said: "Almost a quarter of FSB members operate their business from home and for a small businesses such as these, a PO Box can be crucial to keep business and personal correspondence separate.

"Royal Mail has implemented huge price increases for postal services across the board, but the cost of using a PO Box has risen by almost 80pc. This is unacceptable in the current climate."

The increases have come to light as Royal Mail raises the price of its stamps by 12pc. The price of a first-class stamp has also gone up from 41p to 46p.

At the weekend Postcomm, the industry regulator, suggested that Royal Mail might be able to set its own stamp prices in future because its "finances are weak" – a move that could send prices higher still. The regulator added it was concerned about the company's cashflow.

Royal Mail defended the increase in the price of a PO Box in letters to customers, seen by The Daily Telegraph, as necessary due to "maintenance costs of each PO Box and fees charged for similar services within the market place". It said the organisation had "subsidised the costs" of the PO Box service for several years.

Errol Chandler, a small-business owner from Draycott, Somerset, described the increases as "extortionate". "It is the same box with the same service, surely this cannot be justified," said Mr Chandler, who publishes his own magazine in 15 local villages.

"Even in the rip-off culture that is Britain today these sorts of rises are lunacy. What business is going to increase their prices like that and give nothing extra to their customers?" He has now abandoned the service.

Royal Mail is in a difficult financial position, losing an estimated 6.4p on every single letter that falls through a letterbox because of the fall in business caused by increased email use.

[DGP1]

maintenance costs of each PO Box

I really don't understand anything about how RM thinks anymore, what costs are there that aren't already included in the normal running of the office?
This will be the same idiots who did away with local post and made everything go to the MC, fu**wits shouldn't be in charge of more than their own shoes.

[skull]

maintenance costs of each PO Box

I really don't understand anything about how RM thinks anymore, what costs are there that aren't already included in the normal running of the office?
This will be the same idiots who did away with local post and made everything go to the MC, fu**wits shouldn't be in charge of more than their own shoes.

Even then they would end up putting them on the wrong feet .

[DGP1]

maintenance costs of each PO Box

I really don't understand anything about how RM thinks anymore, what costs are there that aren't already included in the normal running of the office?
This will be the same idiots who did away with local post and made everything go to the MC, fu**wits shouldn't be in charge of more than their own shoes.

Even then they would end up putting them on the wrong feet .

Only after a 2 hour conference call though

[pinstripe]

It's all in preparation for privatisation. We've had the running down of the service, the staff have been hammered and the union castrated. Now, they'll start with the price increases (this one, stamps, DSA) further alienating RM from the general public.

But don't worry, it's all our fault.