But GCA concerned over Royal Mail’s new year plans for second-class stamp prices
Talks with Royal Mail have highlighted concerns that the postal service wants to persuade government to abandon Ofcom’s plan to keep second-class stamp prices pegged to inflation for five years.
The GCA met with Royal Mail last week and was reassured that Christmas 2023 will be delivered on time, now the long-running industrial action which ruined last year’s festive post is settled, with the We Are Christmas internal video – which can be seen below – as a boost for staff, recruitment of 16,000 seasonal workers, five additional temporary sorting centres and an incentive scheme for operational employees.
But the greetings industry association confirmed it would campaign against the Royal Mail’s plans to persuade the government that further price increases and regulatory freedoms were appropriate for second-class stamps – currently still only 75p – in the new year.
In its recent submission to communications industry regulator Ofcom, RM highlighted that the typical cost of second-class post in many European countries is 94p, leading to fears it wants to increase its own prices by up to 25%.
And, as Ofcom is looking at how to evolve the universal service obligation (USO) where Royal Mail has to deliver six days a week to anywhere in the UK, the carrier stated its opposition to the proposal for a lock that keeps second-class prices pegged to inflation for five years from 2024.
GCA ceo Amanda Fergusson said: “Under Beeching we lost much of the railway service we loved because no one had the imagination to ask what they could be. We must not let that happen to our Royal Mail service.
“It’s simply a remarkable British treasure that we can send a card absolutely anywhere in the country for a very reasonable 75p. In the decades ahead, I’m certain we would rue the loss of this service that unites our nation and is part of what makes us British.”
As the GCA meets mps at Westminster tomorrow, 29 November, to try to persuade them to make a #Cardmitment by supporting Ofcom’s proposals and oppose RM’s bid to scrap Saturday letter deliveries, the postal service has launched social media adverts aimed at persuading people to send Christmas cards.
But comments on the ads showed people felt they were “aggressive” and that the sharply-increased £1.25 first-class postage price isn’t fit for purpose, with many letters taking days to arrive, while the majority say stamp prices are simply too expensive.
In a survey of GCA members from the £1.5billion creative industry, the consensus was that they want Royal Mail to deliver frequently, at an affordable price six days a week, and the postal service should be looking at ways to drive demand rather than hiking prices or cutting services.
Members suggest more innovation by offering discounted rates as in Australia at times of high demand, such as Christmas, to encourage greater use, and rebranding stamps as premium and standard to change perceptions of the service provided.
Second-class stamps should be marketed more assertively – the GCA said “Royal Mail’s own research in its submission to Ofcom indicates that customers don’t realise the exceptional value of a second-class stamp”.
And additional revenue streams from advertising on assets such as post boxes, delivery vans and drop points could be explored, along with finding ways to celebrate posties who provide a social service of reducing isolation and building communities as they take the mail round.
Amanda added: “The Greeting Card Association is reassured by the commitments Royal Mail has made to deliver Christmas this year, when the nation connects through the greeting cards which decorate our homes.
“Our members have been very clear about what they want from the Royal Mail service they, and their customers, rely on. They value, cherish and support what we have and are concerned that it’s at risk from the steps Royal Mail propose for next year.
“Card sending is part of keeping families and communities together. But being able to put a smile on someone’s face from receiving a card relies on a service that delivers on time everywhere, all the time – and at a great price. Rolling back from what we have is non-negotiable for them.
“Of course, our members are not unfamiliar with the economic challenges facing Royal Mail – they run and operate businesses large and small too. But they’re asking Royal Mail to step back and re-imagine what the service could be, rather than manage for decline – and very importantly, they stand ready to help with their creativity, passion and love of the service their local postie provides.”
Through its #Cardmitment campaign, the GCA is encouraging people make a commitment to send cards this Christmas, and is meeting with mps in a drop-in session at Parliament tomorrow asking them to send festive cards and encourage others to do so, and visit indie retailers and publishers in their area to remind consumers it still costs only 75p to send a card anywhere in the UK.
