Year: 2003

Royal Mail looks set to press ahead with plans to introduce size-based pricing after asking postal regulator Postcomm to consider the proposals, despite industry pressure to quash the initiative.

The new pricing system will take the size of an item, rather than solely weight, into account, and is to be introduced in April 2005.

The proposals drew heavy criticism from industry bodies when they were first unveiled. Changes have since been made to the original proposals, with Royal Mail taking many of the industry’s concerns on board.

Royal Mail is extending the changeover period for its Postage Paid Impressions (PPIs) proposals in the face of a backlash from industry bosses, who claim they have not been consulted on the issue.

The move follows the DMA (UK)’s appeal to Royal Mail to postpone a decision until it has talked to the industry. Royal Mail has agreed to extend the migration period to 12 months, with a revised implementation date of July 31, 2004.

The DMA welcomes the move, but remains concerned that Royal Mail has still not spoken to the industry. It has now asked the company to enter into talks on the PPI proposals and is awaiting further response.

Post offices could lose almost half their income because of the government’s decision to pay benefits directly into bank accounts, subpostmasters have warned.

“Fifteen million people each week currently draw their pension over the counter of a post office. If direct payment replaces all of this business, the worst case scenario is that subpostmasters will lose up to 45% of their income,” said Colin Baker, general secretary of the National Federation of Subpostmasters.