Small businesses are at risk of being driven to the wall by yet another rise, they say, after Royal Mail announces a stamp price hike. Stockpiling stamps is just one option being considered.
Royal Mail said this morning that the price of a first class stamp would increase by 30 per cent, from 46p to a record high of 60p. A second class stamp will go up from 36p to 50p.
Meanwhile, the cost of sending large letters will increase from 75p to 90p for first class, and from 58p to 69p for second class.
While fewer people now send letters, prefering to email instead, the actor and playwright Mark Rylance told Channel 4 News that letters are superior.
“I much prefer a letter – it’s more personal, there’s more thought in it, there’s more art in it, and usually better writing in it,” he said. “It’s not so fast – people don’t expect you to respond right away. Sometimes there’s a beautiful picture or drawing by the side.”
The changes were announced after regulator, Ofcom, decided to give Royal Mail the freedom to set its own prices.
But small businesses have criticised the rises, saying that many of them depend on the service in order to operate.
With the increases emerging as the cost of fuel is at a record high, coupled with inflationary pressures and consumers spending less overall, some have been talking about stockpiling stamps before the rise comes into play on 30 April.
John Walker, national chairman of the Federation of Small Businesses (FSB), said: “With 84 per cent of small firms dependent on Royal Mail, it is welcome news that they will receive discounts on some products.
“However, it does not go far enough. Rapidly raising stamp prices now will be bad for business. With small businesses and consumers being hit by other rising costs, this has come in at a time when they can ill-afford it.”
On the FSB’s Facebook page, one person wrote: “Defo not a good time…think I’m going to have to stock up before the price hike!”
Another said: “Late deliveries are a major issue. It’s another incentive to go further with digital correspondence and a nail in the coffin of conventional post.”
Royal Mail blamed declining volume of letters for the increase. A Department for Business (BIS) spokesman said: “Price rises are never welcome. However ministers are clear that the top priority is to protect the universal service on which people rely.
“Indeed we have enshrined in law the six day a week, one price goes anywhere service and given Ofcom as the regulator the duty of protecting that service.
“But this service comes at a cost, and its provider, Royal Mail, needs to be financially viable. The most important thing is to secure the universal service, but price rises are only one part of the story, the successful modernisation of Royal Mail is also crucial.
“We welcome Royal Mail’s announcement that it will offer discounted stamps to some low-income households this Christmas, helping to reduce the impact on the most vulnerable.”
Around five million people on pension credit and employment and support allowance or incapacity benefit will be eligible for the Christmas scheme, offering them the chance to buy up to three books of 12 stamps at 2011 prices.
Ms Greene said the universal service, under which the Royal Mail delivers to any house in the UK for the same price, was in “peril” without higher stamp prices.
“This is a very high quality, cherished service, but it needs to be paid for. The increase will restore our finances and maintain the universal service. We had no alternative but to increase prices.”
Ms Greene said research showed the average household spent 50p a week on stamps, so she believed there was no “affordability issue” with higher prices.