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| Version 2 | Version 3 |
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| Record 5p rise in price of a first-class stamp | Record 5p rise in price of a first-class stamp |
| (40 minutes later) | |
| Higher UK postage prices have come into force - with a first-class stamp now costing 46p. | Higher UK postage prices have come into force - with a first-class stamp now costing 46p. |
| This is a record 5p rise in the cost of sending standard letters weighing up to 100g by first-class post. | This is a record 5p rise in the cost of sending standard letters weighing up to 100g by first-class post. |
| Royal Mail has also increased the cost of a second-class stamp by 4p to 36p. A first-class, large letter stamp has risen by 9p to 75p, and by 7p to 58p for second-class mail. | Royal Mail has also increased the cost of a second-class stamp by 4p to 36p. A first-class, large letter stamp has risen by 9p to 75p, and by 7p to 58p for second-class mail. |
| A watchdog described the inflation-busting rise as "disappointing". | A watchdog described the inflation-busting rise as "disappointing". |
| Spending | Spending |
| The average UK household spends around 60p a week on stamps, according to Royal Mail. These price rises would add 6p to this amount, it said. | The average UK household spends around 60p a week on stamps, according to Royal Mail. These price rises would add 6p to this amount, it said. |
| However, in cash terms, the 5p rise is the highest recorded for first-class stamps. | However, in cash terms, the 5p rise is the highest recorded for first-class stamps. |
| Regulator Postcomm gave permission for the increase in November, and the plans were announced by Royal Mail a month later. | Regulator Postcomm gave permission for the increase in November, and the plans were announced by Royal Mail a month later. |
| Postcomm said the changes would help Royal Mail to fund its modernisation programme and help safeguard the one-price-goes-anywhere universal service in the UK. | Postcomm said the changes would help Royal Mail to fund its modernisation programme and help safeguard the one-price-goes-anywhere universal service in the UK. |
| Moya Greene, of Royal Mail, said that the decision had not been taken lightly. | Moya Greene, of Royal Mail, said that the decision had not been taken lightly. |
| "We have thought carefully about these increases as we are conscious of the difficult economic circumstances our customers are facing," she said. | "We have thought carefully about these increases as we are conscious of the difficult economic circumstances our customers are facing," she said. |
| "No-one likes to pay more and we regret having had to take these tough decisions on pricing. After these increases, we will continue providing value for money as our prices will still be among the lowest in Europe. | "No-one likes to pay more and we regret having had to take these tough decisions on pricing. After these increases, we will continue providing value for money as our prices will still be among the lowest in Europe. |
| "We are investing heavily to modernise our operations, which is all about providing our customers with the services they need in today's open, highly competitive postal marketplace. | "We are investing heavily to modernise our operations, which is all about providing our customers with the services they need in today's open, highly competitive postal marketplace. |
| "With the sharp declines in mail volume, our revenues are falling. That means if we do not generate more income, we will simply not be able to keep funding our six-days-a-week collection, sorting, transport and delivery operation to the UK's 28 million homes and businesses." | "With the sharp declines in mail volume, our revenues are falling. That means if we do not generate more income, we will simply not be able to keep funding our six-days-a-week collection, sorting, transport and delivery operation to the UK's 28 million homes and businesses." |
| Competition | Competition |
| Philip Cullum, of watchdog Consumer Focus, said people would be extremely disappointed by the latest rise in prices above inflation. | Philip Cullum, of watchdog Consumer Focus, said people would be extremely disappointed by the latest rise in prices above inflation. |
| "Royal Mail needs to modernise but customers are being asked to pick up the tab. In return, they will expect to see a far more efficient, effective and competitive service," he said. | "Royal Mail needs to modernise but customers are being asked to pick up the tab. In return, they will expect to see a far more efficient, effective and competitive service," he said. |
| Hosiery business UK Tights uses Royal Mail to send its orders to customers. | Hosiery business UK Tights uses Royal Mail to send its orders to customers. |
| "This cost increase as well as the VAT increase will have a direct effect on our profitability. For us there is no real alternative to Royal Mail as we send low-cost small packets," said Jonathan Barber, who set up the business with his wife Dawn. | "This cost increase as well as the VAT increase will have a direct effect on our profitability. For us there is no real alternative to Royal Mail as we send low-cost small packets," said Jonathan Barber, who set up the business with his wife Dawn. |
| "Royal Mail has no competition in this market sector. We feel this needs to change." | "Royal Mail has no competition in this market sector. We feel this needs to change." |
Comments | Comments |
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| We seem to be being asked to bail out Royal Mail and getting precious little in return (again). | |
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| People are using cheaper and quicker ways of sending each other information - for example email soa) Lets make postal charges stupidly complex... oooh less people use itb) Lets make postal deliveries less frequent and less reliable .. less people...c) Lets hike the prices by 4x the rate of inflation.... less people...I wonder whether the CEO who comes up with this will get a bonus? | |
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| Our media publishing side has seen the price of overseas packet mail go up 75% overnight without warning from Royal Mail and then + another 20% for vat (EU ruling for mail within EU).There's been no time allowed to adjust.Overall, this is bad for mail based small exporters and will hit sales dramatically by making it much harder to compete against the big players (eg: Amazon). | |
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| I really like the "we regret"bit,what a farce.Why can't these people see that they are only pricing themselves out of the market in many cases,as people will use emails even more than now.It's not only is the new rate of 46p.for a simple letter that annoys but the ridiculous way in which letter are judged on thickness too.Up to 100gr.? no way is it possible. | |
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| an absolute disgrace - the service gets worse and we pay more for it. i remember when i got post delivered twice a day, the first usually before i left to go to work in the morning. now i'm lucky if my post arrives before tea time. plus, with their monopoly i have no option but to use royal mail. if there was any other way for me to send my letters i would certainly use it! | |
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