Royal Mail to increase stamp prices by 30%

Today it was announced that Royal Mail will increase the price of a First Class stamp to 60p from April, along with other planned price rises.

Currently, the price of a first class stamp is set at 46p, however Ofcom - the post office regulator - has lifted some price controls on products, allowing Royal Mail to increase the prices. For first class stamps, the price will increase by 30%.

From 30th April, a second class stamp will increase from 36p to 50p, a 39% increase. There will also be increases to large stamped letters, air mail and business class post.

The news has angered the public, who over the last ten years ago, have seen the price of a first class stamp increase by over 100%.

However, Royal Mail described the plans as "necessary", after revealing that since 2006, there has been a 25% decline in the volume of post. Royal Mail worries that without the planned increase, the reliability of their service will remain vulnerable in the tough economic climate, and the advancement of technology.

From my point of view, I'm rather worried about these plans too. If you were to ask me a few years ago what the cost of a first class stamp was, I would have been able to tell you. Now, however, the prices seem to increase every year.

On the face of it, 60p might not sound like much, a point the Royal Mail chiefs were making today. OK, so it might be the same price as a chocolate bar, but that is not the point. Compared to other countries, the cost is ridiculously high, and the service is unrelible, despite Royal Mail being keen to point out that the price rise reflects an improvement in service and speed.

But does it? Who are they fooling. Since the last price increase, I've had mail lost, returned and delivered late. Last Christmas, I sent a package three months beforehand to New Zealand with the promise of guaranteed Christmas delivery. It didn't even make the New Year!

The customer service is appalling, and what with the Royal Mail and the Post Office acting as two separate companies, it's painful trying to solve a dispute like a late delivery.

The postal service still plays a vital role in the UK. The Royal Mail chiefs may argue that technology is forcing them out of business, but at the end of the day, there is nothing quite like receiving a letter in the post then an email. It's always going to be used, it just needs to wake up to the 21st century and think ahead.

With the government agreeing last year that 90% of the Royal Mail will be privatised - likely to happen by 2014 - the postal service remains in the spotlight. I'd like to think the Royal Mail will still be here for years to come, and I'm sure it will be. But it needs to focus on the public demands. Forget technology and investment, focus on the small things that matter. After all, it's an important part of our infrastructure that needs protecting.

Pictures Courtesy of Wikipedia

BBC to charge viewers to use On-Demand service

A major overhaul of the TV License fee would see viewers watching their favourite programmes online be charged by the government.

The Department for Culture, Media and Sport will consider plans for anyone using the BBC iplayer website, to watch or listen to recorded radio and TV content, to legally have to pay the current £145.50 TV License.

Currently, anyone watching TV or Radio programmes after they have been broadcast is exempt from paying the fee. However, with the increasing use of on-demand services available through new technology, and the arrival of the BBC-backed Youview next year – the new plug-in-and-watch service that will provide Freeview, news and video on-demand – the government is keen to get rid of the grey area which encompasses the current legislature.

Talking to the Guardian, a spokesperson for the department said: “Government is aware of developing technologies and the changing viewing habits of those who watch television programmes. How the BBC is funded as these issues evolve is a matter the department will need to address in the near future."

Earlier this month, the BBC issued iplayer viewing figures for September, which showed that the service had received 153 million requests for TV and radio programmes; with TV shows such as Outnumbered and Doctor Who, along with The Chris Moyles Breakfast Show and 5 Live Sport Premier League Football coverage on radio, being the top shows for the period.

But the public and users of on-demand services today expressed their anger at the plans. Students in particular have criticised the governments, after it was revealed through recent statistics by Sixthsense, Yougov’s market intelligence platform, that show 75% of students watch 2 to 3 hours of TV Online each day (Source:thedrum.co.uk).

Lana Burgess, a History student at Royal Holloway, argued against the statistics, claiming that; “As a student I watch very little TV, so to have to pay [a TV License] to watch a few shows now and then is ridiculous.”

“Iplayer is there for us to watch after the live viewing if we want to watch it,” agreed Caroline Allen-Rogers, who studies Applied Psychology at Durham University. “We shouldn’t be charged.”

However the BBC, despite the current £200 Million loophole the current legislature entails, have insisted the current TV License is working. Talking to The Mirror, a spokesperson said: “We believe the current system works very efficiently and do not see a need to change its scope.”

The mounting pressure on the BBC comes under months of cost-cutting, and the announcement by the government that the TV License Fee will be frozen till 2017, resulting in impending redundancies and a reduction in department spending across all channels.
---
In further criticism for the BBC, it was recently revealed that former footballer and Match of the Day pundit Alan Hansen is paid £40,000per programme for his pundit role with the BBC, one of nine BBC stars thought to be earning over £1 Million a year.