Price of a second class stamp could be raised to 55p

[TrueBlueTerrier]

http://www.belfasttelegraph.co.uk/news/ ... 96947.html" onclick="window.open(this.href);return false;

A major shake-up of the UK postal service could see the price of stamps rise dramatically.

Ofcom, the postal regulator, is considering allowing Royal Mail to increase the price of a second class stamp by an unprecedented 50% and to remove the cap on first class stamps.

Under the proposed seven-year deal the cost of a second class stamp would rise from 36p now to between 45p and 55p.

There would be no limit on the price of a first class stamp, which currently costs 46p and is the cheapest in Europe - although the price has soared by 70% since 2003.

Nigel Dodds MP said he opposed the proposed price hikes which he also claimed would be bad news for the consumer.

"This would be a big blow to household incomes and small businesses which still depend a lot on the mail," Mr Dodds said.

Ofcom said its proposals, which are subject to an 11-week consultation, were aimed at protecting the universal service obligation (USO) under which the Royal Mail has to deliver to any address in the UK for the same price, six days a week.

Without regulatory changes, it was warned that there was a risk that the USO would not be delivered to the same standard.

Ofcom chief executive Ed Richards said the Royal Mail had been under "inexorable pressure" in recent years because of falling mail volumes of business.

A spokesman for the postal watchdog Consumer Focus said: "Royal Mail is going through major transformation, including modernisation and operational changes, as well as changes to its regulatory regime."

A spokeswoman for Royal Mail last night said it was awaiting the outcome of Ofcom's consultation on its proposals for future regulation of UK postal services before announcing stamp prices for 2012.

Factfile

A schoolmaster from England, Rowland Hill, invented the adhesive stamp in 1837, for which he was knighted. Through his efforts the first stamp in the world was issued on May 6, 1840 when the Penny Black was released, engraved with the profile of Queen Victoria. His stamps made the pre-payment of mail postage possible and practical.

[Cheetah]

Even more subsidies from the general public / smaller business user for the DSA giants. Still it won't be for too long, a stamp will become a thing of the past the price they are charging now, set aside a further hike as no one will be able to afford it anyway

[Lounge Lizard]

"cost of a second class stamp would rise from 36p now to between 45p and 55p. There would be no limit on the price of a first class stamp" - all to make stamped mail profitable so that the busdiness can be sold off for a raesonable sum, simple as that.

[CORTINA]

Just like Rail Fares announced yesterday another hike in prices, some interviewed on tv saying annual season tickets will be come unaffordable or not worth while travelling to work at 2k-3k a year cost.

So the same will for R M stamp prices......is basic logic that people will find cheaper alternative means if they feel ripped off.........an item is only worth was is affodable and at a price that is exceptable.

The more R M encourage the public through increased costs to use the internet. they will not return to old stamp and envelope basics.

The internet will also shut many shops and businesses and create more unemployment in the next few years. That is the future and the UK will have to deal with.....no going back....the internet is KING....it is so obvious as internet growth is around 10% this past year.

Its because it is a no brainer not use it to save money, many save up to a £1000 a year, buying xmas items, booking holidays and searching for best deals....is a way of life to many now..... google it...look it up on the net...phrases used everyday now.

So R M need to think against issues of pricing letters, when the tide is against them and rising yearly and with a reducing customer base....... another 30% extra down turn in letters by 2020, seems a logical thought....