UK Royal Mail delivers new prices but are post offices ready?

Royal Mail introduces its new pricing system – Pricing in Proportion (PiP) – today. From today the price of postage will depend on the shape and thickness of the item as well as its weight.

Commenting on the introduction of PIP, Judith Donovan CBE, Chair of Postwatch's Trade Association Forum, said: "Postwatch understands and accepts the rationale for today's change. It is necessary for prices in a competitive market to reflect their associated costs. We are, however, inevitably concerned about the implementation of this fundamental change.

"As the customers' representative Postwatch is concerned that today's big change may not be fully understood by all customers. Confusion amongst residential customers and small businesses could lead to unnecessarily long queues at post offices.

"We are concerned that post offices are not ready to help customers. In the first week of August, we surveyed post offices throughout the UK to examine the efforts branches are making to alert customers to this major change. Of the 307 post offices Postwatch visited:

" 34 per cent did not have a measuring template displayed.
" 37 per cent were not displaying the PIP poster; and
" 32 per cent did not have PIP leaflets available.

"A third of post offices failing to do the bare minimum points to a potentially complacent approach in introducing what will be the biggest change to our postal service since the introduction of the Penny Black.

"With TV, radio, poster and press advertising and leaflet door-drops, Royal Mail has made considerable efforts to help customers understand the new system. Post offices, however, have a pivotal role in providing customers – particularly vulnerable ones, and small businesses – with help and guidance on the new system.

"Yet, our survey results revealed that as late as the start of August post offices were not ready. Basic sources of information such as posters and leaflets should have been available at all post offices well in advance of PiP's introduction. Whilst we understand that, in the immediate post-introduction period, Royal Mail will be flexible in terms of not surcharging customers who have underpaid postage, the best way of ensuring that customers are paying the correct amount is by making every effort to alert them to the change and its implications.

"Our findings have been shared with Royal Mail. They will have been working to ensure every post office is able to support the push to explain the new pricing system, and we hope the shortcomings revealed by our survey have been addressed.

"We urge all customers to take a few moments to understand how paying for postage has changed. Royal Mail has tried to send a leaflet explaining the change to every home and business in the UK. If you do not recall seeing your copy, please contact the Royal Mail's Price Change helpline on 08456 113 113."

Notes to Editors

1. Royal Mail believes that the price of 80 percent of mail will be unaffected by the change to PiP. However, all customers will be affected, as the new system will require additional factors – size and thickness – to be taken into account when deciding on the amount of postage they need to pay.

2. PiP will apply only to 'domestic' postage – items posted within and to destinations in the UK. Royal Mail's international mail services are not affected.

3. The Postwatch Trade Association Forum lobbies on behalf of industry on postal issues. Membership includes the Direct Marketing Association, Greeting Card Association, Mail Order Trade Association, Mail Users' Association, and the Periodical Publishers' Association.

4. Royal Mail has agreed to share with Postwatch its research results tracking awareness levels of the change. These will show whether good levels of understanding across customer groups have been achieved. These results will be available in October. Additionally, Postwatch will undertake independent research.

5. Postwatch is the watchdog for postal services. Further information is available at www.postwatch.co.uk

Further information

Please contact:

Robert Forsyth on 020 7259 1364 or 07900 263 014

Daryl Barrett on 020 7259 1239 or 07900 263 020