Royal Mail has confirmed it will raise prices for its wholesale postal services by an average of 25% starting 5 October. The increase affects customers who use its services to send various types of mail, including marketing letters, household bills, and medical appointment notices.
The announcement comes via a letter signed by Richard Travers, Managing Director for Letters in Royal Mail’s wholesale business, who acknowledged the difficulty of such price increases amid current economic challenges.
“We understand that any price increase is difficult, particularly in the current economic environment,” the letter states. “The financial challenge of maintaining the UK’s nationwide postal network supported by 130,000 colleagues remains significant, and we are facing rising costs across our operation, including fuel and labour.”
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The letter also explains that these increases are necessary to ensure prices better reflect the true cost of providing a reliable nationwide postal service.
Notably, users of companies such as UK Mail, Whistl, and Citipost will be affected by this change. The Mail Users’ Association, representing financial services and large mail producers, criticised the hike as “unprecedented”, warning that it will place substantial financial pressure on organisations that rely on mail to communicate with customers.
Specific price changes include a 36% increase for sending bulk letters weighing up to 100g via the Economy service, and an 11% rise for large letters weighing between 101g and 250g sent through the Standard service.
A Royal Mail spokesperson added: “These changes relate to our access business customers who will continue to benefit from lower prices than equivalent consumer rates. Royal Mail made losses of almost £800 million over the last four years and the company finances remain below the level that Ofcom considers compatible with a financially sustainable universal service.”