Some of you have been asking (and rightly so)…
Back in February, Royal Mail increased the price of 1st Class post.
Since then, a few customers have asked us:
“Why has 1st Class gone up so much? And why haven’t franking prices changed too?”
Great questions.
The honest answer is: it’s complicated (but we’ve explained it below).
Luckily, Priority Postage is here to simplify things.
So let’s walk through what’s actually happening – and how Priority Postage could help your business.
What is Priority Postage?
Priority Postage is a new option from Royal Mail that gives you quick delivery – 2 working days – but at a lower price than traditional 1st Class.
In simple terms: you still get your post delivered fast, but without paying full 1st Class rates.
For businesses sending lots of important post, that small price difference can add up to significant savings very quickly – without having to compromise on speed.
Why are Royal Mail launching Priority Postage in the first place?
The answer lies in how Royal Mail is regulated.
For 1st and 2nd Class post, Royal Mail are required to meet strict delivery targets (known as Service Level Agreements, or SLAs). If they fail to meet these, they face financial penalties. And with so much volume moving through these regulated services, it’s become harder for them to consistently hit those targets.
You’ve probably even seen the headlines last year about Royal Mail being fined for missing some of these regulated SLAs.
That’s where Priority Postage comes in.
Because Priority Postage sits outside of these regulated services, Royal Mail aren’t held to the same strict delivery targets (even though delivery still typically happens within 2 working days).
By encouraging businesses to use Priority instead of 1st Class, Royal Mail can:
- – Reduce pressure on their regulated services
- – Get the downstream access providers to do some of the work for them
- – Still deliver post quickly
- – Avoid some of the compliance and penalty risks attached to 1st and 2nd Class
So how does Priority Postage compare to 1st Class and 2nd Class?
All these postage options can get a bit confusing, so here’s a simple comparison table:
Who is Priority Postage useful for?
In short – if you’re sending important post that needs to arrive quickly but you’d like to reduce postage costs, Priority Postage could be a great fit.
Here are some common industries and use cases where Priority Postage works particularly well:
💼 Insolvency and Legal Firms
When you’re sending statutory notices, creditor letters, appointment paperwork, or other time-sensitive legal documents, you still need your post to arrive quickly – but don’t always need the full-price 1st Class service.
🏛️ Local Government
Councils and government departments sending council tax bills, reminders, benefit letters, legal notices, and outbound correspondence can maintain delivery speed, while reducing costs across large mail volumes.
🚗 Parking and Enforcement
Notice to Keepers, PCNs, appeals responses and payment demands often need timely delivery, but Priority offers a more cost-effective alternative for high-volume enforcement mailings.
🧾 Debt Recovery and Financial Services
Collection notices, payment reminders, account statements, and financial correspondence can still reach recipients quickly while helping businesses save on growing postage costs.
🏢 General Business Post
Any business sending invoices, statements, customer communications or operational letters that don’t require legal-grade tracking – but still need to reach people quickly and reliably.
Why haven’t franking prices changed like this?
This is where it gets a little technical.
When Royal Mail adjusted its 1st Class pricing earlier this year, it mainly affected account-based pricing (which is what providers like Postworks use).
Franking sits under a separate tariff structure – one that’s still part of the regulated services. So while business rates moved, franking tariffs remained mostly unchanged.
Switching to Priority Postage is easy
If Priority Postage sounds like a good fit for your business, the good news is that you don’t need to change anything complicated to get started.
- It’ll be available in your Postworks account from 25th of July
- No setup required
- Simply select ‘Priority’ when uploading your post – that’s it.
If you’d like to chat through how Priority Postage could help you save money – or if you’re unsure which postage option is best for your business – our Product Specialists are always happy to help.
