Royal Mail has warned that it will raise prices for its wholesale postal service by an average of 25% from October, but Printweek understands that Down Stream Access carriers have demanded an urgent review via Ofcom.
The tariff price hikes will affect its large-scale, bulk mail and postal operator customers who maintain wholesale agreements with Royal Mail, such as Whistl and Citipost.
These specialists work on behalf of large organisations like the NHS, as well as direct mail and transactional printing firms, to sort and transport bulk mail before it is handed to Royal Mail for final delivery.
In a letter, seen by Printweek and signed by Richard Travers, managing director, letters at Royal Mail, the company stated: “We are writing to let you know about forthcoming changes to our Access Mail tariffs, which will take effect from 5 October 2026.
“On average our prices are increasing by 25%. We understand that any price increase is difficult, particularly in the current economic environment.”
Explaining the factors driving the changes, Royal Mail highlighted the ongoing challenges of maintaining a nationwide network as letter volumes decline.
A Royal Mail spokesperson said: “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.
“Fuel, labour and investment costs continue to rise and these price changes more accurately reflect the cost of providing a nationwide postal service.”
Letters classified under access business mail economy are set for the highest price increase, at 36.1%. While letters that are access advertising mail standard MM will see the lowest, with an expected price rise of 10.6%.
The Guardian, which first reported the story, said the changes represented “a multimillion-pound blow” to the NHS and other organisations who use the wholesale postal service, as the health service spends millions on sending letters by post each year.
Printweek understands that Down Stream Access carriers have banded together to appeal to regulatory body Ofcom for a review of the price increases, with the outcome expected this week.
A mailing industry source said: “The justification and scale of this increase is totally unwarranted.”