The cost of first class stamps is set to increase to plug a £100 million black hole.

Official customer body Consumer Focus has hit out at the Royal Mail for plans to raise the cost of a first class stamp by a record 3p.

In a move to generate an extra £100 million a year, the Royal Mail has also revealed it wants to increase the price from 39p to 42p, while second class stamps may also go up.

The move has been sanctioned by postal regulator Postcomm, but Consumer Focus has hit out at the move, which may see the cost of special delivery and parcel delivery services rise.

Chief executive Ed Mayo said that Postcomm is failing to do its job, which may encourage people to seek out alternative parcel delivery providers.

"This is paying for failure. The only reason to hike up the price of a stamp is because Royal Mail has failed to modernise as a business. This is a low blow from the regulator whose job it ought to be to protect the public," he stated.

Postcomm revealed recently that the price control, which limits how much the Royal Mail could charge for its services, needed to be reviewed due to changes in the industry over the last two years.

Written by Lucy Pritchard



Article Added: 30/09/2009 09:35:57