Post prices go up to stamp out LVCR losses

Friday 04 April 2014

The cost of posting a letter is going up this month as Jersey Post continues to struggle to recover from the loss of Low Value Consignment Relief two years ago.

The company says the effect on the company has been dramatic, sales have nearly halved and they’ve lost around £30 million since the UK scrapped the tax relief on products being exported from the Island. They are putting prices up by 1 penny for a local or UK letter from 23 April.

Under the new prices it will cost 46p to send a local letter and 56p to send one to the UK, Isle of Man or to one of the other Channel Islands. But Jersey Post is keeping their small packet rates the same and in some cases lowering them to help small and micro businesses in the Island.

Jersey Post say their running costs have gone up because of cost increases implemented by Royal Mail and they say although the volume of mail has done down, posties now have more households on their rounds. They deliver to more than 43,500 addresses, five days a week.

Chief Executive Kevin Keen said: “We understand that price increases are never good news for our customers but hope they will appreciate the reasons for the changes and note that they are the first stamp price increases from us for two years.”

Most letters and cards sent are under 100g but if you send an unfolded A4 letter it will be classed as a large letter and cost you more to post. Jersey Post say if you try folding the letter and sending in a smaller envelope, the item becomes classed as a Letter (provided it is less than 5mm thick) and will be cheaper to send.

The latest survey showed that the average Jersey household now spends £1 per week on postal services.