Tag: UK

Postcomm: Compensation consultation on delay, loss and damage – second stage

Posted by | Dec 21, 2007 | |

Postcomm issued a consultation in November 2006 asking for views on a number of key issues in relation to the current compensation arrangements for postal packets that have been lost, damaged or delayed.

Royal Mail’s license requires it to have a “standards of service compensation scheme” for compensating users of postal services for delayed mail.

The second stage of this review has now been published, and Postcomm have provided a list of their proposals for both retail and bulk mail compensation.

The current compensation scheme for delay, as determined by Postcomm in October 2003, includes compensation arrangements for senders of mail using bulk mail services. Bulk mail customers currently receive compensation in the form of an annual rebate of a percentage of the money they have paid to Royal Mail, depending on Royal Mail’s annual performance against its quality of service targets for bulk mail.

Postcomm proposes to remove bulk mail from the compensation scheme for delay with effect from 1 April 2009. Postcomm considers that the continuation of a regulated compensation scheme for bulk mail may distort customer behaviour and act as a barrier to switching.

The closing date for this consultation is 18 February 2008.

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The web is getting grey on top

Posted by | Dec 21, 2007 | |

More old people are jumping on to the Internet and the over 55 year-olds now represent nearly one in five of internet users, according to research by Nielsen Online.

Nielsen Online has released figures for the changing age make-up of the UK Internet population as well as the youngest and oldest audiences amongst the 100 most popular brands in the UK.

Over the last year (October 2006-October 2007) the share of the UK internet population made up by under 25-year-olds has decreased from 29% to 25%, while the share of over 55-year-olds has risen from 16% to 19%. At the same time, the average age of the UK internet population has risen from 35.7 to 37.9.

Unsurprisingly high street retailer Marks & Spencer has the oldest average online age at 46.5, while the site with the youngest UK online audience is online games portal Miniclip, with an average age of 28.1.

The top 10 online brands with the youngest average age include the inevitable download site – Limewire, entertainment sites – Nickleodeon, Disney, and social networking sites Bebo.

The top five online brands with the oldest average age are all familiar high-street brands, including M&S, John Lewis, and Nationwide. More surprising are the average ages for supposed “youth orientated” web sites, YouTube has an average age of 34.4, FaceBook 34.6, MSN 36.2 and blogger 38.5.

Alex Burmaster, internet analyst at Nielsen Online, “When looking at how a particular audience is composed by age, a change in share – even by just a few percentage points – actually represents quite a fundamental shift. Age compositions tend to evolve subtly over a number of years so to see such large changes in the course of just a year shows that the Internet population is undergoing a significant ageing process. It will be very interesting to see whether this trend continues over the next 12 months and, if so, whether the types of services and products offered and marketed online adapt to reflect this changing population. New online offerings and technology are usually targeted at the young, but it’s possible brands could be missing a trick if they continue down this path in the future.”

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1000th fee-free ATM for Post Office UK

Posted by | Dec 20, 2007 | |

The Post Office has installed its 1000th free-to-use automated teller machine (ATM) at a Rotherham Post Office branch further cementing its commitment to be a universal provider of free cash access for its customers.

Customers have already withdrawn GBP 1.2 billion from Post Office fee-free ATMs across the UK this year in 20 million transactions and have potentially saved up to a huge GBP 21million in fees levied by charging ATMs.

The new ATM was installed in Thurnscoe East Post Office in Rotherham.

The Post Office and its financial services partner, Bank of Ireland, are committed to rolling out more free-to-use ATMs across the branch network. At the same time the Post Office is withdrawing from its involvement with third party fee-charging ATM suppliers.

Ian Sadler, head of banking & payments, Post Office Ltd, said: “It’s great news that customers of 1000 UK Post Office branches can now benefit from free access to their money using cash machines. This complements the free cash access service for 19 banks and building societies we offer over the counter at all UK Post Office branches.”

“More than one million free cash withdrawals are made every day at the Post Office, making us the largest, free-to-use cash network in the UK.”

Mr Surti, subpostmaster at Thurnscoe East branch, said he has seen a dramatic rise in the number of people visiting the branch because of his new cash machine.

ATM transactions have increased from 105-140 per week to 1600-1700 per week as a result of the new ATM.

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New Royal Mail postage prices for April 2008

Posted by | Dec 20, 2007 | |

Royal Mail said today the price of a First Class stamp for a standard letter weighing up to 100g would rise 2p to 36p from April 7 2008 in line with the price controls set by the regulator, Postcomm, in 2006.

A Second Class stamp for a standard letter weighing up to 100g will rise 3p from 24p to 27p.

When the new prices take effect, Royal Mail’s stamps will still be among the very lowest priced in Europe. The average household now spends 50p a week on stamps, a fraction of the amount spent on telecoms.

Stamped mail makes an average loss of around 6p per letter and packet – and it will continue to be loss-making as the increases will not be sufficient to cover the deficit. The total loss last year on stamped mail was GBP 178 million.

Business customers who use franking machines will continue to get a discount against the price of a stamp. A franked, standard First Class letter will increase by 2p from 32p to 34p in April, while a standard Second Class franked letter will rise 2p from 22p to 24p, increasing the discount for Second Class franked mail discount from 2p to 3p.

For the first time, medium-sized businesses will get discounts on volume – the more they post, the lower the postage bill.

The full details of new prices are published on Royal Mail’s web site. Prices for bulk mail will also be changing, and in some cases will fall in real terms. Some prices for heavier weight items will also be falling to improve Royal Mail’s competitiveness in the growing home-shopping market.

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DMA calls for caution over postal review

Posted by | Dec 20, 2007 | |

The DMA has warned the government not to place an “unrealistic burden” on businesses to fund a universal postal service when it publishes its review next year.

Secretary of state for business John Hutton announced the review on 17 December, outlining the government’s commitment to maintain the universal service while investigating the impact of opening the postal market to competition two years ago.

Royal Mail has introduced a range of proposals, such as pricing in proportion and zonal pricing, to help it compete more effectively in the new open market.

It has argued that its competitors have been able to cherry-pick the higher margin business sectors, while it has been hobbled with maintaining an affordable universal service for consumers and providing the final-mile delivery.

However, many of these new ideas impact more heavily on users of business mail, such as the direct marketing industry.

Walsh said he wasn’t sure how the DMA would be involved in the review, although it is a member of the Postwatch trade association forum.

However, he stressed that it is important that business users get involved, noting that the consultation would not include any direct representatives of large mail users.

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