RM price rise sparks media coverage

Scribbler steps up with £1 postage offer as GCA highlights charities fears over revenue

 

This week’s latest price rise for first-class stamps has not surprisingly captured the attention of mainstream media with the BBC featuring tips on how to beat the increase, and the Sunday Times and Guardian also carrying the story – with the GCA right out there in front.

As the GCA’s press release to the media explained how the inflation-busting 22% increase of a first-class stamp to £1.65 – the fifth hike in less than three years almost doubling the cost – could herald the end of an affordable postal service, Royal Mail put the new price into effect yesterday, 7 October.

Above: Scribbler is offering £1 first-class postage
Above: Scribbler is offering £1 first-class postage

The industry association also highlighted fears from the charity sector that the move could slash the amount raised through card sending, especially at Christmas, including details of how in the past 10 years, Cards For Good Causes has given £22.5million to charities and £2.7m to local communities all raised with sales during the festive period.

Greeting card retail chain and online platform Scribbler has stepped up to help customers by cutting the cost of sending a card first-class from its website to just £1 because it sees the “unreasonable price hike” as “really serious for the industry”.

“I was inspired by the work that the GCA was doing,” chief operating officer John Byrne told PG Buzz, “especially on lobbying regarding postage costs. So, we have decided to take some action with our on-line business to help our customers.

“This is quite a cost for us, but we think it is important to make a stand. We don’t have an end date for this initiative, and will continue it for as long as we can.”

The Sunday Times article at the weekend featured Nicholas Royle, who runs Nightjar Press short story publishing business in Manchester, who explained he’d bought 100 first-class stamps using recent winnings from his NS&I Premium Bonds.

Above & top: The Sunday Times featured Bexy Boo’s Bex Hassett
Above & top: The Sunday Times featured Bexy Boo’s Bex Hassett

He said: “Each time I use one, I’ll smile inwardly at the thought that I paid 30p less than Royal Mail will be charging!

“I try to break even, but Royal Mail makes it very difficult. Where possible, I now deliver books myself – I call it Royle Mail.”

And card publisher Bex Hassett, of Bexy Boo, was very excited that she’d also been featured, having been included as one of several case studies in the GCA press release.

Bex told the Times she will have to pass on the higher delivery costs to customers: “No other business could put up prices 74% in two years without improving their products or services but, because they have a monopoly, we have no choice but to keep using them.”

She highlighted the feature on her social media channels on Sunday, adding: “For all greeting card companies, 50% of cards are sent by post so this could have a detrimental impact on all of our businesses. We all feel very strongly against it. So, I was then asked to be a case study to express my opinions.

“As a small business, I’m so grateful to be able to have a voice and be heard nationally. It’s a huge achievement for me and Bexy Boo and I’m beyond grateful to have been asked.
“The price for 1st class stamp goes up tomorrow so if you fancy being prepared, why not buy in bulk today and gleefully hoard them for Christmas and everyday cards, sharing the wave of love that card sending gives for now and beyond.”

On Friday, 4 October, BBC Breakfast had a segment on the subject, which can be seen in the video below, featuring GCA CEO Amanda Fergusson, and also giving tips on how to beat the price rise, including sending using second-class stamps where the price is being held at the 85p it rose to in April.

Screenshot 2024-10-08 at 17.19.00

The latest increase has only hit first-class prices because postal regulator Ofcom has pegged the second-class cost to inflation until at least 2029 to ensure that posting a letter remains affordable under the universal service obligation where Royal Mail must deliver six-days-a week across all UK addresses for the same price.

As part of the Ofcom investigation into the future of the postal service, it is seriously considering Royal Mail’s bid scrap second class deliveries on Saturdays, and cut back to three or even just two days a week.

Amanda said: “Our members are worried this this will simply lead to a loss of even more trust in the relatively affordable second-class stamp and the service Royal Mail provides.

“We fear the consequence of that collapse in trust will be a doom spiral of decline which will result in Royal Mail, in time, calling time on an affordable second-class stamp leaving card and letter senders with no option but a premium, uncapped, unregulated first-class stamp beyond their financial reach.

“That’s why our members believe this first-class price hike could herald the beginning of the end of an affordable and reliable national postal service. It’s time for politicians from all sides to save the second-class postal service from being dismantled.”

Above: Cards For Good Causes fears for its festive income
Above: Cards For Good Causes fears for its festive income

The Guardian has also covered the story, featuring Cards For Good Causes’ CEO Christine Ansell who explained that charities delivered £16.8billion worth of public services in 2020/21 so, without money raised by her organisation and many others, the burden of supporting the most vulnerable would sit with the Government and local councils which already face well documented challenges in taking on additional responsibilities.

Christine added: “We rely on people buying and sending cards, especially during the Christmas period. In addition to negatively impacting our ability to generate funds for charities, an increase in the cost of stamps, combined with a reduction in second-class stamp deliveries, could exacerbate social isolation and loneliness.

“That could particularly impact vulnerable groups like the elderly, people in rural areas, and those with limited access to digital communication.

“For many individuals, physical letters and cards are a personal and important means of staying connected with family and friends, especially for those who may not be comfortable using email or social media.”

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