Stamp price hike will have 'disastrous' effect on elderly an

[TrueBlueTerrier]

Stamp price hike will have 'disastrous' effect on elderly and vulnerable

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


Plans to raise the price of stamps are likely to have a "disastrous" effect, with the elderly and the vulnerable - as well as small businesses - among the worst hit, according to an MP leading a Commons probe into the proposals.

Royal Mail wants to increase the cap on the cost of second class stamps from 36p to 55p from April while under the plans there would be no limit on the price of a first class stamp, currently 46p.

MPs on the Business, Innovation and Skills committee have announced an inquiry into the move and are today taking evidence from postal regulator Ofcom as well as Consumer Focus, the watchdog.

Adrian Bailey, chairman of the committee, told BBC Radio 4's Today programme that Royal Mail had already been losing volume of mail and any price increase was likely to "accelerate that process" and have a "disastrous" impact on its finances.

Mr Bailey said that it was not the role of the committee to interfere with or try to "micro-manage" the company.

But he added: "I think that certainly we will be questioning whether a potential 53% increase in the second class stamp and an uncapped increase in the first class stamp will have anything other than a disastrous impact on traffic.

"The people who will be hit wll be the elderly, the vulnerable, and those on low incomes, but also small businesses as well."

He said that while some businesses could obtain discounted rates for sending high volumes of mail, individuals as well as many smaller firms did not send enough to qualify for them so would be adversely affected by the price hike.

Royal Mail proposed the increase last month, after Ofcom suggested in October that restrictions on the level at which it sets the price of stamps could be lifted.

The company has insisted that there was “no affordability concern” about such a steep rise.

Consumer Focus has said that given the scale of the increase “it would pay for customers to stock up now” on books of stamps. Downing Street has insisted any price rise had to be “affordable”.

[DGP1]

Or the alternative is for the government to subsidise RM or even better, stop the DSA companies leeching the profitable work away.

[capitalbiker]

Such an increase with pro rata changes to overseas mail could serve to decimate the Christmas card industry affecting jobs throughout the production chain , right down to post offices and posties. Over the last couple of years I have had many customers feel fleeced because they bought a 'nice card' to send and end up paying £1.65 to send abroad.
The response, get yourself organised and send by surface by early October! but then how many retailers have their cards on display in September and would folks get organised enough to buy their cards in Janauary when shops are clearing stock?

Wasnt there a similar issue way back with British Rail, declining usage, increasing fares, more declining usage. Nowadays a myriad of rail operators, an even greater range of fare structures - result confusion. Ofcom could really screw things for a lot of folks if these increases go through.

[blackadder]

first class will go to 99p then. as anything over a pound can go to private couriers

[Royal_Fail]

First class is gonna sky rocket and rightly so for next day delivery for most part,we should introduce a 3rd class stamp for social mail imo

[nataddick]

I recall reading that the average UK household spends about £13 a year on stamps which includes Christmas cards! So, a rise in the price of stamps is hardly going to make a huge dent in the purse of the elderly compared to the austerity measures being taken by the current Government.

[capitalbiker]

I take your point re icreased postage costs v austerity measures but even a modest calculation would reveal that at £13 per annum on postage the sums stack up to more than £700 million pounds per annum for cards and stamps. It is reported today that use of facebook etc instead of texting may have cost phone networks £8.8 billion globally, how much of that would have been cards and stamps in former years. above average price increases in postage will do nothing to help reverse any downward trends only make tings worse.