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| Record 5p rise in price of a first-class stamp | Record 5p rise in price of a first-class stamp |
| (about 1 hour 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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| THE PENNINES SEEM TO BE APROBLEM WITH THE POSTAL SERVICE.1st CLASS IN BOTH DIRECTIONS FROM ACCRINGTON TO SHEFFIELD TAKES AT LEAST 4 DAYS NORMALLY. CURRENTLY 5. NO MOTHER'S DAY CARD HERE THANKS TO THE DECLINING SERVICE FROM THE MAIL COMPANY | |
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| I can't help feeling that postage is still actually pretty cheap. For the price of a bag of chocolate buttons you can send a letter anywhere in the UK, which will have an 88% chance of arriving the next day. That's not a bad service.(See my blog post on the subject for more: http://abicadell.com/2011/04/01/the-price-of-stamps/ ) | I can't help feeling that postage is still actually pretty cheap. For the price of a bag of chocolate buttons you can send a letter anywhere in the UK, which will have an 88% chance of arriving the next day. That's not a bad service.(See my blog post on the subject for more: http://abicadell.com/2011/04/01/the-price-of-stamps/ ) |
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| Stamps are still ridiculously cheap. It would cost me more to just get in my car and drive up the road than it would be to post a letter to the far reaches of Scotland. Also, hopefully this will also mean less junk mail that I have to recycle. | Stamps are still ridiculously cheap. It would cost me more to just get in my car and drive up the road than it would be to post a letter to the far reaches of Scotland. Also, hopefully this will also mean less junk mail that I have to recycle. |
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| UPDATE - Just received notice about todays increase from Royal Mail in post at 14:20 telling us..."...we now have specific information to enable you to plan..." (the increase)Again zero notice of a another dramatic overnight change. | UPDATE - Just received notice about todays increase from Royal Mail in post at 14:20 telling us..."...we now have specific information to enable you to plan..." (the increase)Again zero notice of a another dramatic overnight change. |
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| This price increase is a consequence of the postal regulator not allowing Royal Mail to increase prices in the past at the level that Royal Mail required for adequate investment in modernisation.So there should not any surprise that its happened now when this government wants to part privatise Royal Mail. | This price increase is a consequence of the postal regulator not allowing Royal Mail to increase prices in the past at the level that Royal Mail required for adequate investment in modernisation.So there should not any surprise that its happened now when this government wants to part privatise Royal Mail. |
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