Small business

Royal Mail is proud to provide the Universal Service and of the role we play in the economy. We make commerce happen by connecting companies, customers and communities across the UK.

Small businesses which send larger volumes of mail can benefit from significant discounts on their postage costs, either through franking or contract services. Franking customers benefit from good value prices and significant discounts, saving over 21 per cent on the price of a First Class letter and 34 per cent on the price of a Second Class letter.

The services we provide to small businesses are protected by law. The Postal Services Act 2011 and the EU Postal Services Directive 1997 require universal postal service prices to be affordable. Ofcom found in March 2013 that Royal Mail’s services are affordable to small and medium sized businesses. Ofcom said (in their report on the affordability of postal services, published 19 March 2013):

“The evidence we have collected indicates that universal postal services are affordable for both residential consumers (including low income and other vulnerable consumers) and businesses (including small and medium businesses) at current prices. We have reviewed the price changes that are due to take effect from 2 April 2013 (as announced by Royal Mail in March 2013), and consider that universal postal services will continue to be affordable following these changes .” (1)

Specifically, the report stated:

  • Across all businesses, our research (2) found that average (median) spend on post is around £18 a month
  • Our consumer research shows that small business spend on post is low. For example, businesses with up to two employees have median spend of £9 per month and mean spend of £133 per month
     

(1) Ofcom - The affordability of universal postal services report (pdf)
(2) Review of User Needs Research 2012