Royal Mail admits GBP4.5bn black hole will force up stamp prices
Royal Mail is to force customers to pay for its GBP4.5bn pension fund deficit with plans to raise stamp prices to plug the black hole.
The revelation is contained in minutes of a high-level meeting between executives of Britain’s postal industry, hosted by the regulator Postcomm last month.
Royal Mail insists that no decision has been taken on how to reduce its pensions gap. But at the meeting, Stephen Agar, Royal Mail’s director of regulatory affairs, said: ‘Prices have been too low to fund the deficit. Pensions are a real cost that customers should bear.’
The disclosure comes as ministers are preparing to review proposals by Royal Mail’s chairman, Allan Leighton, for the Government to hand over 51 per cent of the state-owned company to the workers and take on some of the pension liabilities.
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