Cost of postage stamps could soar as Royal Mail may be allowed to scrap price control

Business News · #1 02-04-2011, 01:51 PM

Price controls on stamps could be scrapped leaving Royal Mail to decide on swingeing increases without any right of challenge.

Details emerged in a consultation document published last night by the industry regulator, Postcomm.

The possibility will alarm families and businesses who have suffered a series of inflation-busting increases in the cost of stamps in recent years.

The price of First Class stamp is to rise by 5p from Monday, taking it to 46p, while second class will go up 4p to 36p.

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Paul Norman · #2 03-04-2011, 07:21 AM

If it takes that amount of money to send a letter, that is what it should cost. I do not see that we should be subsidising this service.

Make it commercial. Make it pay.

I admit that I am obviously looking at this from my own perspective. I buy potentially 50 postage stamps in a year - probably fewer. My business dispatch is all done through other companies - not the post office.

Earl · #3 03-04-2011, 08:16 AM

Quote:

Originally Posted by Paul Norman

If it takes that amount of money to send a letter, that is what it should cost. I do not see that we should be subsidising this service.

Make it commercial. Make it pay.

I admit that I am obviously looking at this from my own perspective. I buy potentially 50 postage stamps in a year - probably fewer. My business dispatch is all done through other companies - not the post office.

Quite for to long the Royal Mail has been subsidising business.

Maybe this will help reduce the amount of junk mail and thereby trees we waste.

Earl

Paul Norman · #4 04-04-2011, 03:11 PM

Quote:

Originally Posted by Earl

Quite for to long the Royal Mail has been subsidising business.

Maybe this will help reduce the amount of junk mail and thereby trees we waste.

Earl

Good point. If I need to send a letter, I will pay. If I don't, I won't.

sixworks · #5 18-04-2011, 11:45 AM

Prices have already gone up a lot just recently. As a reseller of postage it makes little difference to us, but it will affect our clients very heavily.

I've no objection to them being able to set a 'market' price, though in a monopoly that's quite hard to set!

Why don't they let it be a free market and get a competitor involved? It's certainly a natural monopoly but there are ways and means of privatising elements of it.

James

Cost of postage stamps could soar as Royal Mail may be allowed to scrap price control

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