Despite the cost of stamps soaring in April - first class rose to 60p from 46p and second class to 50p from 36p - Royal mail boss Moya Greene hasn't ruled out another rise in the near future. 50p for a stamp is a bargain she says.

"Realistically, what can you buy for 50p today?" Not much but isn't April's 39% price hike enough?

Money-saving guide

Know your rights


Profit turnaround

Especially when you consider that real UK wages are not - by a long mark - rising in line with inflation. Latest consumer prices index (CPI) saw a nasty, unexpected hike in September, soaring from 2.2% in September to 2.7% in October.

Meanwhile Royal Mail is benefiting from April's stamp price rise. In the first half of 2012 Royal Mail made £144m in group profits compared with just £12m in the same time frame in 2011. Much of that profit though comes from its parcels business.

By law the brakes can still be applied to future price rises of second class stamps, but only in line with inflation till 2020. There is no cap on future price rises for first class stamps whatsoever. Tellingly, Royal Mail admitted letter volumes have fallen a hefty 9% since April's stamp price rise.

Float?

That won't worry Royal Mail. It's increasingly being fattened up for private sale - even a stock market float is a possibility - with a focus on the more profitable parcel delivery arm of the business. Last year the Government introduced the Royal Mail Bill, allowing the Royal Mail to be sold off by the end of 2013 at the earliest.

A sell-off does not go down well with Dave Ward, the Communications Workers Union deputy general secretary. Ward worries a sell-off will go to private sector cherry-pickers: "Competition destabilises the universal service - companies being allowed to cherry-pick profitable contracts while paying low wages for example."

Sting in the tail

"There's also a problem," he adds, "with pressure that Royal Mail managers are putting on delivery workers to make unrealistic cost savings. This is causing mayhem in many offices with staff being pressured to work unpaid overtime when really the managers have got the workloads wrong."

There's another nasty sting for the British taxpayer from a Royal Mail sell-off: in order to sweeten a deal, taxpayers' will still be on the hook for Royal Mail's £8.4bn pension deficit. Accusations of privatising profits and socialising losses, then, could be set to return.

10 of the biggest consumer rip-offs

  • 1. Mobile data roaming charges
    <p> <span style="text-align: left; ">Using a mobile phone to make and receive calls, send texts and browse the web while abroad can be extremely costly &ndash; especially if you are travelling outside the European Union (EU), where calls can cost up to 10 times as much as at home.</span></p> <div> </div> <div> To avoid high charges, Carphone Warehouse suggests tourists ensure a data cap is in place, use applications to check data usage, turn off 'data roaming', avoid data-intensive applications such as Google Maps and YouTube and use wi-fi spots to update social networking sites.</div>
    1. Mobile data roaming charges
  • 2. PPI
    <p> <span style="text-align: left; ">Payment Protection Insurance (PPI) is supposed to help people to continue meeting their loan, mortgage or credit card repayments if they fall ill or lose their jobs. However, policies are often over-priced, riddled with exclusions and sold to people who could not make a claim if they needed to.</span></p> <div> </div> <div> At one point, sale of this cover - which was often included automatically in loan repayments - was estimated to boost the banks' profits by up to &pound;5 billion a year.</div> <div> </div> <div> Now, though, consumers who were mis-sold PPI can fight back by complaining to the bank or lender concerned and taking their case to the Financial Ombudsman Service (08000 234567) should the response prove unsatisfactory.</div>
    2. PPI
  • 3. The Lottery
    <p> It could be you, but let's face it, it probably won't be. In fact, buying a ticket for the Lotto only gives you a 1 in 13.9 million chance of winning the jackpot.</p> <div> </div> <div> With odds like that, you would almost certainly be better off hanging on to your cash and saving it in a high-interest account.</div>
    3. The Lottery
  • 4. Budget airlines
    <p> No-frills airlines such as EasyJet may promote rock-bottom prices on their websites. But the overall fare you pay can be surprisingly high once extras such as luggage and credit card payment fees have been added - a process known as drip pricing.</p> <div> </div> <div> Taking one piece of hold baggage on a return EasyJet flight, for example, adds close to &pound;20 to the cost of your flight, while paying by credit card increases the price by a further &pound;10.</div> <div> </div> <div> It may therefore be worth comparing the total cost with that of a flight with a standard airline such as British Airways.</div>
    4. Budget airlines
  • 5. Credit card cash withdrawals
    <p> Cash advances, which include cash withdrawals, are generally charged at a much higher rate of interest than standard purchases.</p> <div> </div> <div> While the average credit card interest rate is around 17%, a typical cash withdrawal of &pound;500, for example, is charged at more than 26%.</div> <div> </div> <div> What's more, as the interest accrues from the date of the transaction, rather than the next payment date, costs will mount up even if you clear your balance in full with your next payment.</div>
    5. Credit card cash withdrawals
  • 6. Supermarket 'deals'
    <p> Supermarkets such as Tesco and Asda often run promotions under which you can, for example, get three products for the price of two.</p> <div> </div> <div> However, it is only worth taking advantage of these deals if you will actually use the products. Otherwise, you are simply buying for the sake of it, which is a waste of your hard-earned cash.</div> <div> </div> <div> To avoid paying over the odds, it is also worth checking the price per kilo to ensure that larger <a href="http://money.aol.co.uk/2012/05/24/supermarkets-slammed-for-multi-buy-rip-offs/">'economy' packs really are cheaper</a> than the smaller versions.</div>
    6. Supermarket 'deals'
  • 7. Train fares
    <p> Buy a train ticket at the station on the day of travel and the price is likely to give you a shock - especially if you are travelling a long distance at a busy time of day.</p> <div> </div> <div> However, <a href="http://money.aol.co.uk/2012/03/13/how-to-cut-the-cost-of-your-commute/">you can cut the cost of train travel</a> by 50% or more by going online and making the purchase beforehand - especially if you book 12 weeks in advance, which is when the cheapest tickets are on sale.</div> <div> </div> <div> Other ways to reduce the price you pay include avoiding peak times and taking advantage of so-called carnet tickets, which allow you to buy, for example, 12 journeys for the price of 10.</div>
    7. Train fares
  • 8. Packaged current accounts
    <p> Most High Street banks offer packaged accounts that come with monthly fees ranging from &pound;6.50 up to as much as &pound;40, with a typical account charging about &pound;15 per month.</p> <div> </div> <div> Various benefits, such as travel insurance and mobile phone insurance, are offered in return for this fee. But whether or not it is worth paying for them depends on your individual circumstances.</div> <div> </div> <div> Before signing up, it is therefore essential to <a href="http://money.aol.co.uk/2012/01/14/maximise-your-current-account/">check that you will make use of enough of the benefits</a>, and that you cannot get them for less elsewhere.</div>
    8. Packaged current accounts
  • 9. Overseas withdrawals/card payments
    <p> Overseas money transfers or travel money purchases attract the same high rate of interest as credit card cash withdrawals.</p> <div> </div> <div> Worse still, most credit cards &ndash; and debit cards &ndash; also charge you a foreign loading fee if you use them to make purchases while abroad.</div> <div> </div> <div> You can, however, <a href="http://money.aol.co.uk/2012/02/17/how-to-avoid-overseas-bank-fees/">avoid these charges</a> by using a Saga Platinum or Nationwide Building Society credit card.</div>
    9. Overseas withdrawals/card payments
  • 10. Premium rate phone lines
    <p> Numbers starting 0871 cost 10p or more from a landline, while those starting 09 can cost more than &pound;1 a minute <a href="http://money.aol.co.uk/2012/03/21/call-0800-0808-and-0870-numbers-for-free-from-your-mobile/">from a mobile phone</a>.</p> <div> </div> <div> And the operators of these high-cost phone lines, some of which are banks, often get a cut of the call charges.</div> <div> </div> <div> Most 09 numbers are linked to scams and should therefore be avoided at all costs, while 0871 numbers can often be bypassed by searching for an alternative local rate numbers on the saynoto0870.com.</div>
    10. Premium rate phone lines


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