Royal Mail to make a major change to fees in days as shoppers face Christmas surcharge

ROYAL Mail is to make a major change to fees within days as shoppers face a surcharge this Christmas.

The service has revealed that business account customers will be asked to pay an additional peak surcharge of 5p for letters and 10p for parcels.

This will come into force on November 18 and end on January 10, 2025 – the peak time for Christmas deliveries.

While the surcharge won’t be charged to directly to consumers, there are concerns that they will end up footing the bill anyway as businesses look to up their prices to cover the extra cost.

Sarah Coles, personal finance analyst at Hargreaves Lansdown, said: “At a time when rising prices have eaten into profits, some companies will feel they have no alternative but to pass the costs on.

“It means shoppers being clobbered with extra delivery charges at a horribly expensive time of year.”

The same surcharge was added to letters and parcels for the first time last year.

The 5p peak surcharge is applied to Royal Mail 24 and Royal Mail 48 large letters, Royal Mail Tracked 24 and Royal Mail Tracked 48 letterboxable products sent by business account holders.

While the following products will be hit with a 10p peak surcharge:

• Royal Mail 24
• Royal Mail 48 Parcels
• Royal Mail Tracked 24
• Royal Mail Tracked 48 Parcels
• Royal Mail Tracked Returns
• Royal Mail Special Delivery Guaranteed by 9am, 1pm and end of the day Sunday
• Special Delivery Guaranteed Returns

A Royal Mail spokesperson said: “The peak surcharge only applies to business customers for the Christmas period and was introduced last year.

“It applies an additional charge to certain business parcel products for a limited period to reflect the increased demand and capacity needed to handle increased volumes.

“Other parcel carriers apply a similar surcharge. Christmas is our busiest time of the year and we invest in around 16,000 additional staff, more vehicles and temporary sites to increase our capacity to handle double the normal volumes of parcels.”

It comes after Royal Mail upped the price of first-class stamps by 30p to £1.65 at the start of October.

First class stamp prices increased by 10p to £1.35 in April and by 10p to 85p for second class.

Royal Mail said it had tried to keep price increases as low as possible in the face of declining letter volumes, and inflationary pressures.

More Royal Mail changes

In October, Postal regulator Ofcom said that Royal Mail could be allowed to drop Saturday deliveries for second class letters under an overhaul of the service.

Regulator Ofcom, which has been consulting on the future of the universal postal service since January, said it is now focusing efforts on changes to the second class service while keeping first class deliveries six days a week.

Under the plans being considered, second class deliveries would not be made on Saturdays and would only be on alternate weekdays, but delivery times would remain unchanged at up to three working days.

Ofcom said no decision had been made and it continues to review the changes, with aims to publish a consultation in early 2025 and make a decision in the summer of next year.

Royal Mail said letter volumes have fallen from 20billion in 2004/5 to around 6.7billion a year in 2023/4, so the average household now receives four letters a week, compared to 14 a decade ago.

Royal Mail also ousted old-style stamps and replaced them with barcoded ones last July.

The business said the move would make letters more secure.

Anyone who still has these old-style stamps and uses them may have to pay a surcharge.

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