Saturday, 14 April 2012

It is a gold stamp

First-class stamps will increase from 46p to 60p while second-class ones will soar by more than a third from 36p to 50p.

Royal Mail will be raising prices from April 30 in order to return the universal service to sustainability.

The government-owned postal service in fact, is under threat from 25 per cent drop in postal volumes and losses of about £1billion over the last four years. Volumes are expected to continue to fall as electronic alternatives have replaced letters both within companies and private households.

Despite the current economic climate, price increases are needed to safeguard the UK’s postal service.

Royal Mail (RM) chief executive Moya Greene said that the increase will restore RM finances and maintain the universal, six-day-a week and high-quality service.

Posting a large letter will cost 90p for first class and will go up to 69p for second class. The overall rise is the biggest since the mid-Seventies and customers are joining the queue at post offices and outlets across the country to secure a reasonable allocation of stamps before the end of the months.

However, according to the Communication Workers Union, the move comes directly from the government and is the natural progression towards full competition and privatisation.

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