Consumer: Stamp price war protest

[TrueBlueTerrier]

http://www.yorkshireeveningpost.co.uk/n ... -1-4409097" onclick="window.open(this.href);return false;

Royal Mail is increasing the price of stamps by 14p. Sophie Hazan investigates who it will hurt and finds some plucky consumers have plans of their own.

Royal Mail is increasing the price of its stamps by a record 14p.

First-class stamp prices will increase from 46p to 60p and second class from 36p to 50p from April 30.

In 2000 a first-class stamp cost 27p, and a second-class stamp 19p. This latest rise is the largest leap ever recorded.

Royal Mail say it could not have continued operating without this increase. Critics say consumers are unlikely to care.

Consumerwatch visited Richmond Hill Community Centre on Long Close Lane to find out what members thought of the rise.

Pensioner Pat Harrison, 65, is already taking measures of her own.

At Christmas she plans to send several cards in one envelope to one address, where she knows several people who live close to one another. She will ask the recipient to hand deliver them for her.

She said: “Royal Mail will put up the prices but I don’t think they’ll win as people won’t post as much.”

Friend Karen Watts, 52, from Halton, added: “I’ve just bought a whole load of stamps in advance before the new prices come in as I have to send parcels to my mum.

“Also I am going to start giving out Christmas and greetings cards to people when I see them rather than use the post.

“If I know a birthday’s coming up and I see that person I will give it to them early if I have to.

“I already do a lot of things online to avoid paying postage, so it seems I’ll have to do more things this way.”

It’s not just consumers who will be affected, but businesses and charities too.

New second class stamp charges will cost Richmond Hill Elderly Action an extra £336 in postage a year.

The charity, which is based at Richmond Hill Community Centre, sends out its news letters to 800 addresses three times a year.

Darrell Xavier, an outreach worker at the charity, said the extra money it will cost could have funded on of the activities and services the charity offer.

He said: “That money could have been used for transport for the lunch club on a Thursday or towards establishing a new activity.

“We offer subsidised taxis on a Thursday to collect around 16 people and bring them here for a two course meal.

“It costs us around £20 each week for three taxis ona round trip - there and back.

“It is often a chance for us to see some residents who would not otherwise escape their four walls.

“But we can’t not send the news letter as it is a lifeline of information to some of our members.”

Monica Mukanganyama, 63, originally from South Africa, said postage already costs her a small fortune as she has eight children living all around the world.

Three of her grown-up children stayed in South Africa when she moved to the UK, three have relovated to Zimbabwe, one is in Australia and one has settled in Dubai.

She said: “Mostly I keep in touch with them by phone but I’m always sending them birthday cards and parcels.

“To those of us with many children who are not close by postage can be especially expensive.

“And I am a pensioner, so these rises are really going to be hard.”

Ofcom, which took over regulation of the postal service from Postcomm last October, said a cap had been placed on the price of second-class stamps for standard letters to protect vulnerable consumers.

Over the next seven years, second-class stamps will not cost any more than 55p.

However, the cap will be indexed in line with inflation.

Robert Hammond, director of postal policy and regulation at Consumer Focus, said: ‘This is not great news for consumers.

“I doubt anyone is going to think about the challenges facing Royal Mail when they are paying 60p for a first class stamp.

“Unfortunately, the economics of Royal Mail meant that something had to give to maintain the universal service obligation.

‘This is a very significant increase in the price of an essential service and those consumers who continue to use it will look much harder at the value for money and quality of service that they get.

“Royal Mail has not gone for the maximum allowable under the new regime. We hope that this is a sign that it recognises they cannot rely on pushing up prices to turn around its fortunes.

“To become a stable business making a commercial rate of return will mean delivering on greater efficiencies, as much as increasing prices.”

[Lounge Lizard]

"At Christmas she plans to send several cards in one envelope to one address, where she knows several people who live close to one another. She will ask the recipient to hand deliver them for her."
She said: “Royal Mail will put up the prices but I don’t think they’ll win as people won’t post as much.” - as we're always told Royal Mail lose money on second class stamped mail, RM will surely win if 'people won’t post as much'.

[Mr Rush]

I've had a few (old) people on my walk ask about the price hike amongst the other changes in the news. I've explained the universal service was maintained by cross-subsidisation of stamped mail by profitable business contracts, but now we're too busy subsidising the DSA operators (what would Adam Smith say?).

She will ask the recipient to hand deliver them for her

Most people will start peeling off uncancelled stamps if they aren't already doing so. Where's Revenue Protection when you need them?

[happyhippo]

"At Christmas she plans to send several cards in one envelope to one address, where she knows several people who live close to one another. She will ask the recipient to hand deliver them for her."
She said: “Royal Mail will put up the prices but I don’t think they’ll win as people won’t post as much.” - as we're always told Royal Mail lose money on second class stamped mail, RM will surely win if 'people won’t post as much'.

hey management were right with one thing there will be less on our backs after the changes and modernisation takes place, carry on i enjoy being paid to do less work. Keep it up boss very soon all we will have in the LWT is virgin media and dominos leaflets.