Royal Mail back door postal charges rapped

BUSINESSMAN Andy Loynes today blasted the Royal Mail for slapping a 20 per cent increase on the price of pre-paid envelopes, which are popular with small firms.

The controversy comes just weeks after postal chiefs unveiled plans to charge companies £14 a week for early deliveries. They later announced a re-think, following protests.

Now Consignia, the Royal Mail’s owner, has enraged small business bosses by raising the cost of packets of 100 pre-paid envelopes from £29.60 to £35.50.

A range of other products used by companies has gone up by between one and five per cent.

Andy, 37, who runs Pure Marketing Communications of Bury, said today: “The envelopes are handy because they come with the Queen’s head on and look professional.

“You can even buy them branded, with your company name on.

“They make life easier for businesses and look the part. I buy them on the internet via the Royal Mail website.

“When I saw the extent of the price rise, I thought it was a mistake.
“I don’t think such a huge increase is justified. Small businesses are being penalised yet again. It’s a way of increasing first-class postage by the back door, given that the regulator has denied Consignia the opportunity to increase the price of stamps. What makes it worse is that I have no power to resist, as I can’t buy pre-paid envelopes anywhere else.”
A Consignia spokeswoman said the increases were effective from July 4 and were allowed under the terms of the licence granted by Postcomm, its regulator.
“We haven’t put the prices up for seven years, and in recent times have been selling them at a loss.
We are no longer in a position to be able to afford to do that. The increase reflects the costs of the stationery, not the postage,” she said. The other business-related items which have become dearer include special parcel deliveries, international packages and first and second class post weighing more than 350g – the first rises for two years.
The spokeswoman said Consignia made every effort to inform customers of the changes, including writing to 40,000 businesses.
Nick Goulding, chief executive of the Knutsford-based Forum of Private Business, said he shared Andy’s concerns.