Increase in price of stamps 4 times more than for big Co's

[TrueBlueTerrier]

Increase in price of stamps four times more than for big companies

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The rise in the cost of posting a letter is four times more for pensioners and vulnerable groups than for businesses, it has emerged.

Last night Royal Mail was accused of forcing pensioners and vulnerable groups to shoulder a “disproportionate” rise in the price of stamps compared with companies.

From April 30, the price of stamps rose from 46p to 60p - 30 per cent - for first class stamped mail, and from 36p to 50p - 39 per cent.

However Royal Mail figures show that the increase is far larger than the increase for businesses which use post letters using a franking machine.

The price of sending a First Class franked letter rose from 39p to 44p (13 per cent) and for Second Class, from 28p to 31p (11 per cent)

The price increase, which went through on Monday, is also far higher than the 9 per cent price increase across all of its products that Royal Mail said it needed to cover its costs.

The increase was criticised by Labour and pensioners’ groups. Roger Turner, General Secretary of the National Federation of Occupational Pensioners said: “There is clearly not a sound economic reason for such staggering rises.

“How can it be fair for the individual customer to pay nearly four times the increase for a second class stamp than a business does using franked mail? It beggars belief that the costs of supplying stamps to post offices and shops risen so much compared to the cost of franked mail.

“We must not allow these people to be disadvantaged by unfair business decisions and we will continue to fight for their rights and to ensure that their voices are heard. Are these rises actually aimed at making Royal Mail more attractive to potential purchasers?”

The Daily Telegraph disclosed on Saturday how Royal Mail is braced for a 15 per cent fall in the number of stamped second class letters being sent, and a 12 per cent drop in the number of stamped first class letters sent.

Ian Murray MP, Labour’s shadow postal affairs minister, added: “It is clear that the ordinary consumer is being hit the hardest by the disproportionate increase in the price of stamps.

“Whilst pensioners have to find 30 per cent and 39 per cent increases on first and second class stamps respectively, franked customer are limited to 10 per cent.

“This in itself is an admission by Royal Mail that the business cannot sustain disproportionate increases for its business customers and competitors. There is a very fine line for the Royal Mail to tread between price increases and losing valuable customers.”

Royal Mail spokesman James Eadie said: “Raising prices is never easy. It is not a decision we have taken lightly. Regretfully, we have had no choice but to do so. We have thought very carefully about the impact on our customers and on our own business.

“It is a long-standing feature of many markets that businesses, as they typically have higher volumes than consumers, obtain substantial discounts. This has been a feature of the postal market for many years.

"Franking machines are typically used by small and medium sized businesses. They are very important to the UK economy and we are honoured to support them.

"To benefit from the franked mail discounts there are substantial costs a business needs to bear such as rental and maintenance fees. These costs need to be taken into account when comparing franked mail with stamps.

“Every letter we carry is important to us. The overwhelming majority of mail that we handle is business mail. This is to the benefit of business and consumers because it helps fund the high quality Universal Service all our customers benefit from.”

[MGB]

Time to get a franking machine? I could have one for the whole street and charge 10p plus the postage to use it and it'd still be cheaper than stamps...