Royal Mail criticized over pricing

The Royal Mail has faced criticism from the British Chamber of Commerce (BCC) after their Pricing in Proportion initiative is shown to raise costs for small businesses.

60 pct of businesses participating in a survey conducted by the BCC stated that their postage costs had risen because of the change in pricing. Only 16 pct felt that Pricing in Proportion (PiP) had simplified the system, and fewer than 1 pct believe that it is an improvement on the previous pricing scheme.

The PiP system was designed to be a revenue neutral exercise for the Royal Mail, basing costs on the size of mail as opposed to weight, reflecting the expense of handling larger pieces of mail. The survey indicates that PiP has failed to simplify the system for customers, and has even raised postage costs for some.