DMA responds to proposals to remove price restrictions

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DMA responds to proposals to remove price restrictions on Royal Mail, potentially meaning a rise in postage costs

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The Direct Marketing Association has responded to the news of a possible rise in the price of postage by Royal Mail which, it is feared, would have an adverse affect on its members, the price of a second-class stamp possibly rising by as much as 50%.

The news of a rise in the price of stamps has raised concerns about the future of small businesses, after the UK Government’s proposals to give Royal Mail powers to charge an unlimited price for first class stamps. The cost of a second-class stamp could also rise by more than 50 per cent.

Mike Lordan, chief of operations for the DMA, commented: “No price increase is welcome - especially when some users are already going to see a 20% increase because of the impact of VAT. However, we are pleased that Royal Mail has acknowledged the importance of direct mail and kept increases for Advertising Mail to a minimum. We also welcome the introduction of new products that will allow more direct mail to qualify for the Advertising Mail discounts."

Regulator Ofcom is currently in consultation over the proposal to remove all price restrictions on Royal Mail and is expected to announce its decisions in the coming weeks.