New Royal Mail postage prices for April 2009

[TrueBlueTerrier]

Royal Mail today announced that the price of First and Second class stamps for standard letters weighing up to 100g would rise by 3p, to 39p and 30p respectively, from 6 April 2009, in line with the price controls set by the regulator, Postcomm.

The price increases will add less than 5p to the average UK household’s weekly expenditure - households currently spend around £26 on postage each year, considerably less than on other forms of communication, including telephone and broadband services.

After the new prices take effect, Royal Mail’s stamp prices will remain among the lowest in Europe, while Quality of Service is among the best. However, even after these price rises stamped mail will still be loss making for Royal Mail.

Earlier this month the report of the Independent Review Panel led by Richard Hooper highlighted the scale of the challenge presented by rapidly falling mail volumes and the need to ensure that the Universal Service can be secured for the future. Last year Royal Mail lost more than £100 million providing the Universal Service, and more than £200 million across the wider area of services whose prices are set by the regulator.

Luisa Fulci, Royal Mail’s Director of Marketing Services, said: "Stamped mail remains very affordable and consumers are still receiving excellent value for money - most countries in Europe charge more to deliver less. Our overriding priority must be to safeguard the currently loss making six-days-a-week one-price-goes-anywhere Universal Service - a task which the current market makes much harder, as big business customers choose other forms of electronic communications or competing operators instead of continuing to subsidise consumers.

"The change in the way people communicate is accelerating the structural decline in market volumes, with the Hooper report predicting that volumes could fall by between five and seven per cent a year."

Business customers will see price increases averaging 4.2%, but the changes include a range of measures to ensure that both large and small businesses can get the best value for money from Royal Mail’s services:

- Smaller price increases for businesses using franking machines and pre-paid accounts;

- Increased discounts for machineable mail and lower than inflation increases for many bulk business services including Mailsort 2.

Royal Mail’s most recent independently measured Quality of Service report showed all First and Second Class mail, Standard Parcels, Special Delivery and bulk business services were delivered at target beating performance levels.

The full details of new prices are published on Royal Mail’s website at www.royalmail.com/prices2009.

Ms Fulci added: "We are committed to ensuring that prices remain as competitive as possible while complying with the price controls set by the regulator and ensuring that Royal Mail can continue to fund the one-price-goes-anywhere stamped mail service to the UK’s 27 million addresses against the backdrop of greater competition and falling mail volumes."

Ends

Issued by Royal Mail:
148 Old Street
London
EC1V 9HQ
www.royalmail.com

[DGP1]

Does this mean that we can expect a 4.2% payrise next year TBH I think we'll be lucky to still have a job next year

[TrueBlueTerrier]

Ms Fulci added: "We are committed to ensuring that prices remain as competitive as possible while complying with the price controls set by the regulator and ensuring that Royal Mail can continue to fund the one-price-goes-anywhere stamped mail service to the UK’s 27 million addresses against the backdrop of greater competition and falling mail volumes."

Oh dear between the Hooper report (they said 28 million) and this press release 1,000,000 homes and business have disappeared, looks like house volumes are falling as well.

[dvbuk55]

Well we won't be delivering to Woolworths or MFI and ................... who else?

[markis]

If they put up prices more and more will resort to email and texts.

[Darren Bent]

I hope this include DSA mail.

[POSTMAN]

Any thoughts that this price rise could kill us? It's a big jump.

[baldrick]

Any thoughts that this price rise could kill us? It's a big jump.

Postage will still cost less than most of our 'competitors' in Europe.

[Beforenineoclockgoodone]

Scandalous, how on earth are people gonna afford that on top of the credit crunch? I mean to pay 39p to get a letter from one part of the Country to the other, I don't know how we do it? I suppose Joe Public will have a little moan?

[heapsy]

Scandalous, how on earth are people gonna afford that on top of the credit crunch? I mean to pay 39p to get a letter from one part of the Country to the other, I don't know how we do it? I suppose Joe Public will have a little moan?

They probably will, but let's face it, just what can you buy for that amount in THIS country?

[DGP1]

Any thoughts that this price rise could kill us? It's a big jump.

It's typical of how out of touch the senior management are, with companies cutting prices/not raising prices and with inflation set to fall now is not the time to be putting prices up but I suppose it's just another way of destroying the reputation of RM.

[ruralpostie]

If we end up bein "fully" privatised u can triple that amount. Yea 39p is a good deal to get a letter ANYWHERE in the country, personally think it should be more for the service!!!

[k979aaa]

One question is TNT DHL UKMAIL having too pay the 4.2% increases in postal delivery charges?. Are they hell

[Lounge Lizard]

Royal Mail today announced that the price of First and Second class stamps for standard letters weighing up to 100g would rise by 3p, to 39p and 30p respectively, from 6 April 2009, in line with the price controls set by the regulator, Postcomm.

The price increases will add less than 5p to the average UK household’s weekly expenditure - households currently spend around £26 on postage each year, considerably less than on other forms of communication, including telephone and broadband services.

After the new prices take effect, Royal Mail’s stamp prices will remain among the lowest in Europe, while Quality of Service is among the best. However, even after these price rises stamped mail will still be loss making for Royal Mail.

Earlier this month the report of the Independent Review Panel led by Richard Hooper highlighted the scale of the challenge presented by rapidly falling mail volumes and the need to ensure that the Universal Service can be secured for the future. Last year Royal Mail lost more than £100 million providing the Universal Service, and more than £200 million across the wider area of services whose prices are set by the regulator.

Luisa Fulci, Royal Mail’s Director of Marketing Services, said: "Stamped mail remains very affordable and consumers are still receiving excellent value for money - most countries in Europe charge more to deliver less. Our overriding priority must be to safeguard the currently loss making six-days-a-week one-price-goes-anywhere Universal Service - a task which the current market makes much harder, as big business customers choose other forms of electronic communications or competing operators instead of continuing to subsidise consumers.

"The change in the way people communicate is accelerating the structural decline in market volumes, with the Hooper report predicting that volumes could fall by between five and seven per cent a year."

Business customers will see price increases averaging 4.2%, but the changes include a range of measures to ensure that both large and small businesses can get the best value for money from Royal Mail’s services:

- Smaller price increases for businesses using franking machines and pre-paid accounts;

- Increased discounts for machineable mail and lower than inflation increases for many bulk business services including Mailsort 2.

Royal Mail’s most recent independently measured Quality of Service report showed all First and Second Class mail, Standard Parcels, Special Delivery and bulk business services were delivered at target beating performance levels.

The full details of new prices are published on Royal Mail’s website at http://www.royalmail.com/prices2009.

Ms Fulci added: "We are committed to ensuring that prices remain as competitive as possible while complying with the price controls set by the regulator and ensuring that Royal Mail can continue to fund the one-price-goes-anywhere stamped mail service to the UK’s 27 million addresses against the backdrop of greater competition and falling mail volumes."

Ends

Issued by Royal Mail:
148 Old Street
London
EC1V 9HQ
http://www.royalmail.com

"Business customers will see price increases averaging 4.2%" - maybe, but domestic customers are seeing increases of 8% for First Class ( 36p to 39p ) and 11% for Second Class ( 27p to 30p )

[Big Daz]

Scandalous, how on earth are people gonna afford that on top of the credit crunch? I mean to pay 39p to get a letter from one part of the Country to the other, I don't know how we do it? I suppose Joe Public will have a little moan?

They probably will, but let's face it, just what can you buy for that amount in THIS country?

Certainly not a standard choclate bar out of a quadrant vending machine!!!!!!