UK Royal Mail wants size to matter

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.
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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, are published today on Postcomm’s website
www.postcomm.gov.uk. Printed copies are available from Postcomm at 6 Hercules
Road, London SE1 7DB. Responses are requested by 27 July 2004.
Postcomm – the Postal Services Commission – is an independent regulator. It has been set up
to further the interests of users of postal services. Postcomm’s main tasks are to:
• Seek to ensure a universal postal service at an affordable uniform tariff
• Further the interests of users wherever appropriate through competition
• License postal operators
• Control Royal Mail’s prices and quality of service
• Give advice to government on the future of the post office network.
Postcomm’s policies are steered by a board of eight commissioners, headed by the
chairman, Nigel Stapleton.
Interviews can be arranged with Nigel Stapleton and Martin Stanley.