Royal Mail has announced another change to its planned postage price increases for 2026. The price increases originally due to come into effect on 5th October have now been withdrawn completely. In their place, Royal Mail has announced a new set of lower increases, which are due to take effect from 7th December 2026.
So, what’s changed, and what does it mean for businesses using direct mail?
What were the proposed Royal Mail 2026 price increases?
Back in July, Royal Mail announced a new set of postage price increases that were due to come into effect on 5th October 2026. The changes would have meant significant increases for businesses using Business Mail and Advertising Mail, so understandably, the announcement caused concern across the mailing industry.
Following the announcement, a formal dispute with Royal Mail was raised which Paragon Print supported alongside others in the industry. Ofcom agreed to investigate the dispute, meaning the proposed price increases were put on hold and could no longer go ahead on 5th October.
Royal Mail has now withdrawn those original price increases completely and announced a new set of revised, lower increases instead.
What Are the New Royal Mail Price Increases?
The new prices are due to come into effect from 7th December 2026. While the increases are lower than those originally announced in July, there are still some significant changes for businesses to be aware of.
Royal Mail has announced:
• Business Mail: an average increase of 19.4% (down from the 30.7% originally proposed)
• Business Mail Standard: an average increase of 15% (down from 19%)
• Business Mail Economy: an average increase of 21% (down from 36%)
• Advertising Mail: prices will increase by 12%
These are average increases, so the exact impact will depend on the type of mail you send, the service you use and your mailing requirements.
Why Have the Prices Changed Again?
According to Royal Mail, the revised prices take into account some of the concerns raised about the original increases, which is why several of the proposed increases are now lower. However, Royal Mail says that price increases are still necessary as the number of letters being sent continues to fall, while the cost of maintaining a nationwide postal service remains high.
To put this into context, annual letter volumes have fallen from around 20 billion at their peak in 2004-05 to 5.7 billion in 2025-26.
What Does This Mean for Businesses?
Although the revised increases are lower than those originally proposed, postage is still going to become more expensive for many businesses. This makes planning your mailings carefully more important than ever.
Simple steps such as cleaning your mailing data before sending a campaign can help prevent money being spent on duplicate records, people who have moved address or customers who are no longer contactable.
It is also worth looking at the postal service you use, the format and weight of your mail, and whether your campaign could qualify for any available Royal Mail incentives.
Related article: How to Measure Direct Mail ROI: A Practical Guide
Can You Reduce the Impact of Rising Postage Costs?
While businesses can’t control Royal Mail’s prices, there are ways to make sure you’re not spending more on postage than you need to. At Paragon Print, we work with customers to look at the whole mailing process, from preparing and cleansing data through to print, fulfilment and postage.
Depending on your campaign, there may be opportunities to:
• Clean your mailing data and remove duplicate, incorrect or outdated records.
• Review your mail format, weight and specification.
• Choose the most appropriate postal service for your requirements.
• Take advantage of relevant Royal Mail incentives where available.
Plan campaigns around upcoming price changes where timings allow. Even small changes can make a difference when you’re sending mail at scale.
What Happens Now?
Royal Mail’s revised Access postage prices are currently due to come into effect from 7th December 2026. However, with the original dispute still being considered by Ofcom and concerns remaining across the industry, it is possible this may not be the final development.
As a leading UK direct mailing house, we’ll continue to keep a close eye on any further developments and share updates as we receive them. If you have direct mail campaigns or customer communications planned for the remainder of 2026 or into 2027, now is a good time to review them. Our team can help you understand how the new prices could affect your mailing costs and look at ways to make your campaigns as efficient and cost-effective as possible.
Need help planning an upcoming mailing? Get in touch with the Paragon Print team to talk through your requirements.