Royal Mail special delivery prices to go up (UK)

Royal Mail is to make changes to it’s Special Delivery service by reducing the insurance cover to GBP 500 maximum and introduce a Special Delivery High Value service for items of higher value.

Postcomm has responded to Royal Mail’s request that it be allowed to modify it’s current Special Delivery Next Day service by introducing a new ‘high value’ service and lowering the maximum compensation value on standard Secial Delivery items from GBP 2500 to GBP 500. The request was initially centered around the transit of jewellery items but has now been modified to appease concerns raised by Postcomm and others.

Postcomm organised a consultation based on the original proposal and 318 responses were received which included concerns from jewellery suppliers, the British Hallmarking Council, foreign exhanges suppliers, and even QVC the TV shopping channel. The biggest response was from those involved in the sale and supply of jewellery who felt that being forced into using the SDHV service would be costly and discriminatory.

The original application was made in 2006/7 and included a request to increase SDND from GBP 4.10 to GBP 8.90 but concerns by the jewellery industry that items requiring reworking and therefore posting numerous times would simply become unprofitable.

Royal Mail’s proposal that a Special Delivery High Value (SDHV) service be introduced that would still have the GBP 2500 compensation protection but a delivery target of 3pm, also raised concerns over postal workers safety in transporting such goods. Postcomm also felt that singling out jewellery would be unfair as other goods of similar value would effectively be on a cheaper tariff so Royal Mail was asked to look again at their proposal and come up with a less discriminatory scheme.

Royal Mail is to make changes to it’s Special Delivery service by reducing the insurance cover to GBP 500 maximum and introduce a Special Delivery High Value service for items of higher value.

Postcomm has responded to Royal Mail’s request that it be allowed to modify it’s current Special Delivery Next Day service by introducing a new ‘high value’ service and lowering the maximum compensation value on standard Secial Delivery items from GBP 2500 to GBP 500. The request was initially centered around the transit of jewellery items but has now been modified to appease concerns raised by Postcomm and others.

Postcomm organised a consultation based on the original proposal and 318 responses were received which included concerns from jewellery suppliers, the British Hallmarking Council, foreign exhanges suppliers, and even QVC the TV shopping channel. The biggest response was from those involved in the sale and supply of jewellery who felt that being forced into using the SDHV service would be costly and discriminatory.

The original application was made in 2006/7 and included a request to increase SDND from GBP 4.10 to GBP 8.90 but concerns by the jewellery industry that items requiring reworking and therefore posting numerous times would simply become unprofitable.

Royal Mail’s proposal that a Special Delivery High Value (SDHV) service be introduced that would still have the GBP 2500 compensation protection but a delivery target of 3pm, also raised concerns over postal workers safety in transporting such goods. Postcomm also felt that singling out jewellery would be unfair as other goods of similar value would effectively be on a cheaper tariff so Royal Mail was asked to look again at their proposal and come up with a less discriminatory scheme.

Royal Mail revised their proposal so that if an item (including jewellery) is worth less than GBP 500, it can be sent by SDND, and the SDHV service would be based around a 1pm delivery target instead of 3pm. The SDHV service would be around 40% more expensive under Royal Mail’s revised pricing structure but all special delivery prices are to rise in April 2008. For example, an item up to 2kg in weight is currently GBP 7.75 including GBP 500 insurance and GBP 9.30 including GBP 2500 insurance. From April it will be GBP 8.25 incl GBP 500 insurance and GBP 10.10 incl GBP 2500 insuance.

The SDHV service once introduced, will limit the compensation value attached to SDND items to GBP 500 cover only.