Jersey Post raises postal rates as letter volumes fall by 11%

Jersey Post is increasing its postal rates later this month, with the basic letter price rising by just over 2%. The Channel Island postal operator said the move was a response to the continuing financial impact of its declining letter volumes, along with the growing number of households to which it has to deliver five days per week.

Local letter rates for the first 100g will rise by a penny (2.17%), to 47p, from Thursday 24 April.

Letters going to the UK mainland, the Isle of Man and other Channel Islands will also rise by a penny for the first 100g, to 57p (a 1.78% increase).

European letter rates (20g letter) will rise by 2p, or 3.2%, to 64p. The international letter rate (10g) will rise by 3p, or 4.16%, to 75p.

Price changes took account of a 1.3% rate of inflation as of December 2014.

Tim Brown, the Jersey Post chief executive said his firm had tried to keep price increases as small as possible.

“We passionately believe that the services provided by Jersey Post represent great value for money, and that these new prices should have a minimal impact on most Islanders; the average household spends just £1 per week on postal services,” he said.

“In addition, we will continue to look at ways that we can support the community, for example, offering discounts on key stamp prices at Christmas, as well as providing tiered discounts for heavier users of the postage system.”

Jersey Post said its 2014 letter volumes were 11% down on those seen in 2013. Outbound mail volumes were down 7% year-on-year, with inbound mail down 4% year-on-year.

The company delivers to more than 44,500 addresses across the Channel Island, a number that increased by 1,000 since 2013.

Jersey Post saw its turnover fall by 22% to £34m in 2013, although operating profits grew by 5%. The company saw its mail volumes cut in half by the loss of the island’s fulfillment industry, after the UK government closed an import sales tax loophole in 2012.