Royal Mail wants size to matter
27 April 2004
Postcomm today began consulting on Royal Mail proposals that would bring about the biggest change in postal pricing since the Penny Black. The company has asked Postcomm if it can change the way it charges for letters and packets to take account of the size of the mail item.
At the moment the price of the stamp depends on the weight of the letter. But Royal Mail says it costs more to sort, handle and deliver big envelopes and packets and it wants stamp prices to take account of the size of the envelope.
Nigel Stapleton, chairman of Postcomm said:
“These proposals would involve major changes. They mean that light but large mail such as very large greetings cards, CDs, rolls of photographic film, audio cassettes and video tapes, would cost more to post, but that some heavier items – books for example – would cost less. I hope as many people as possible will let us know what they think.”
Royal Mail has suggested three sizes for a letter, a large letter and a packet.
A letter is mail that would fit into an envelope 165mm x 240mm (approx 6½in x 9½in) and not more than 5mm (approx. 3/16 in) thick
A large letter is mail that would fit into an envelope 250mm x 353mm (approx 9¾in x 14 in) and not more than 10mm (approx. 3/8 in) thick
A packet is mail that either measures more than 250mm x 353mm or is thicker than 10mm.
Royal Mail has designed the changes to be “revenue neutral” so that increases for large lightweight items are offset by reductions elsewhere. For example Royal Mail wants to charge the same for all standard letters up to 100 grams. At the moment a first class letter weighing 100 grams needs a 42p stamp. Under Royal Mail’s proposals, providing it fits within the maximum size and thickness of a letter, it would require only a 28p stamp. The company says that 70% of mail would be unaffected by the changes, and the price of a basic 1st or 2nd class letter would remain unchanged.
Notes for editors
As part of the consultation, Postcomm has linked up with Postwatch, the watchdog for postal services, to distribute 50,000 copies of a leaflet Does size matter to you? which explains the proposed changes. Leaflets are available from Postcomm, any of Postwatch’s regional offices or by calling the Postwatch helpline 08456 013265. A Welsh version is available.
The need for further work to assess the cost justification for Size Based Pricing (SBP) means that if Postcomm approves its introduction, it will not be possible for SBP to be introduced in April 2005. The earliest possible date for the introduction of SBP is September 2005, but it is more likely that SBP would not be introduced before at least April 2006. The date for any introduction of SBP will depend on the time required to carry out the further work to assess the cost justification and the length of the customer notice period that Postcomm decides after consultation, is appropriate.
The full document, Royal Mail’s Proposal to Introduce Size Based Pricing, the summary document and the leaflet, is available from Postcomm at 6 Hercules Road, London, SE1 7DB. Responses are requested by 27 July 2004.
