Royal Mail has announced it will hike prices for bulk postal users by up to a third, delivering a multimillion-pound paper cut to the NHS and other large organizations that still believe in the magic of physical mail.

Starting October 5, the average increase will be 25%, though some services will see a 36.1% jump - because nothing says 'reliable service' like charging more while missing delivery targets. The NHS, which spent at least £100 million on postage in 2024, could now face several million pounds in extra costs just to remind patients about appointments they probably forgot about.

The price hikes affect bulk mail customers like UK Mail, Whistl, and Citipost, who handle sorting for banks, HMRC, and the NHS before Royal Mail takes over for the 'final mile' - the part where letters actually get delivered, sometimes on time.

Royal Mail, now owned by Czech billionaire Daniel Křetínský since April 2025, is blaming declining letter volumes (down from 6.3 billion items in 2019-20 to 4.2 billion now) and rising costs for fuel and labor. In a letter seen by the Guardian, managing director Richard Travers explained that price increases are 'necessary to ensure prices more accurately reflect the cost of providing a reliable, nationwide postal service' - though 'reliable' might be doing some heavy lifting here.

Ofcom has launched yet another investigation into Royal Mail after nearly a quarter of first-class mail arrived late in the year to March. The regulator has fined the company £37 million since 2023 for failing to meet delivery targets, and is looking into allegations that Royal Mail prioritizes parcels over letters - a practice the company denies, presumably while sorting parcels.

The Mail Users' Association called the increase 'unprecedented,' warning it will 'place considerable additional financial pressure on organizations that rely on mail to communicate with customers.' Meanwhile, Royal Mail notes it has to deliver to 32 million UK addresses and has lost almost £800 million over the last four years, adding that these changes will 'reduce the impact on customers' - which is a bit like saying a punch to the gut reduces the impact of a kick to the shins.