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Royal Mail’s latest price increase took effect on 5 October 2026, but the changes are not as simple as another general rise in stamp prices.
The biggest increases affect parcels, tracked services, Signed For, Special Delivery and Royal Mail business-account services. Standard Letter stamps, however, did not rise again in October. The ordinary 1st Class Letter stamp remains £1.80, while the 2nd Class Letter stamp remains 91p.
That distinction matters because some businesses and consumers searching for the Royal Mail price increase October 2026 are assuming every postal service became more expensive.
For e-commerce sellers, marketplace businesses and companies sending hundreds of parcels each month, the October changes are more significant. Some parcel prices have risen by more than 50p, while the gap between buying postage online and paying at a Post Office branch has widened.
Royal Mail has published the latest rates in its official October 2026 price information.
What Changed on 5 October 2026?
The October increase primarily affects parcel services.
Among the services that became more expensive are:
- 1st Class parcels
- 2nd Class parcels
- Royal Mail Tracked 24
- Royal Mail Tracked 48
- Signed For parcels
- Special Delivery
- Royal Mail 24 business-account parcels
- Royal Mail 48 business-account parcels
Ordinary Letter stamp prices did not receive another October increase.
This makes the latest change particularly important for online retailers rather than businesses primarily sending standard correspondence.
For example, a company posting 500 parcels every month could see annual postage costs rise by hundreds or even thousands of pounds depending on the service it uses.
How Much Have Royal Mail Parcel Prices Increased?
The exact increase depends on both the service and the channel used to buy postage.
Some representative changes for small parcels up to 2kg include:
| Service | Previous Price | October 2026 Price | Increase |
| Branch 1st Class Small Parcel | £5.45 | £5.90 | 45p |
| Branch 2nd Class Small Parcel | £4.25 | £4.60 | 35p |
| Branch Tracked 24 | £5.70 | £6.05 | 35p |
| Branch Tracked 48 | £4.45 | £4.70 | 25p |
| Online 1st Class Small Parcel | £5.15 | £5.70 | 55p |
| Online 2nd Class Small Parcel | £3.95 | £4.40 | 45p |
| Online Tracked 24 | £4.65 | £4.80 | 15p |
| Online Tracked 48 | £3.65 | £3.75 | 10p |
The figures show why businesses should not simply apply one percentage increase across their entire shipping budget.
Some services moved by only 10p or 15p, while others increased by 45p or 55p.
Is the 1st Class Stamp Going Up in October 2026?
No.
One of the most important points about the October Royal Mail price increase is that standard Letter stamps have not increased again.
The current standard prices remain:
| Letter Service | Current Price |
| 1st Class Letter | £1.80 |
| 2nd Class Letter | 91p |
Businesses following previous Royal Mail stamp price increases should therefore separate the earlier 2026 stamp changes from the October parcel update.
The October increase mainly affects parcel senders and selected commercial services.
Tracked 48 Can Now Be Cheaper Than Standard 2nd Class
One of the most unusual results of the new price structure is that Royal Mail Tracked 48 can be cheaper than standard 2nd Class when postage is purchased online.
For a small parcel up to 2kg:
| Online Service | Price |
| Tracked 48 | £3.75 |
| Standard 2nd Class | £4.40 |
That means Tracked 48 is currently 65p cheaper than standard 2nd Class for this parcel category.
For businesses that have always selected 2nd Class because they assumed it was the cheapest Royal Mail option, this is an important reason to review fulfilment settings.
Tracked 48 also provides tracking features that standard 2nd Class does not provide to the same level.
For an online retailer sending 500 parcels a month, a difference of 65p could theoretically represent more than £3,900 across a year if every parcel qualified for the cheaper option.
Actual savings will depend on weight, dimensions, destination and the shipping arrangements used.
Online Postage Can Be Much Cheaper Than Buying at a Branch
The October increase also makes the payment channel more important.
For example, a Tracked 48 small parcel up to 2kg is currently:
- £3.75 online
- £4.70 at a branch
That is a difference of 95p per parcel.
An e-commerce business sending 100 qualifying parcels a month could therefore face a difference of around £95 each month simply because of how postage is purchased.
The same principle applies across several Royal Mail services.
Businesses still purchasing large volumes of postage manually at Post Office branches should compare those costs against Click & Drop and other online buying options before increasing customer shipping charges.
How Much Could the Increase Cost Small Sellers?
Small increases look relatively minor when viewed per parcel, but volume changes the picture quickly.
Consider standard 2nd Class parcels purchased at a branch. The increase is approximately 35p for a small parcel up to 2kg.
A seller posting 100 parcels a month would pay approximately:
100 × £0.35 × 12 = £420 more per year
At 500 parcels a month:
500 × £0.35 × 12 = £2,100 more per year
For online 2nd Class parcels, where the example increase is 45p, 500 monthly parcels could mean around £2,700 in additional annual postage costs.
That can materially affect small-margin products sold through eBay, Etsy or a standalone online store.
Royal Mail Business Accounts Have Increased Too
Royal Mail 24 and Royal Mail 48 business-account customers have also been affected.
Reported October changes include approximately:
- 15p more for Royal Mail 48 parcels up to 2kg
- 30p more for Royal Mail 24 parcels up to 2kg
A business sending 500 RM48 parcels per month could therefore face roughly £900 extra annually, before considering VAT and additional surcharges.
The same volume using RM24 with a 30p increase could produce around £1,800 in extra annual base-rate costs.
These calculations demonstrate why businesses should model the impact using their own shipment data rather than judging the increase from headline figures.
Peak and Fuel Surcharges Could Make Q4 More Expensive
The October base-price increase is not the only cost businesses need to consider.
Royal Mail’s Peak Surcharge starts on 2 November 2026 and runs until 10 January 2027, covering the busiest Christmas and returns period.
Business customers may also face a 16% Fuel and Energy Surcharge on applicable services.
The International Surcharge is currently reported at 12% on relevant products.
This means the headline parcel rate may not represent the final amount paid by a contract customer.
A business forecasting Christmas fulfilment costs should therefore consider:
- The October base-price increase
- The applicable Fuel and Energy Surcharge
- The November Peak Surcharge
- VAT where relevant
- Negotiated discounts
- International charges for overseas orders.
For larger senders, these additional costs may have a bigger financial effect than the October increase itself.
Did Royal Mail Wholesale Prices Rise by 25%?
No, not as originally proposed.
Royal Mail had issued a wholesale Access pricing notice that was expected to produce increases averaging around 25%.
The Mail Competition Forum challenged the change, representing 17 Access customers, and Ofcom accepted the dispute on 4 September 2026.
Royal Mail later withdrew the relevant price-change notice, known as CCN 129.
Ofcom subsequently closed the case.
The official Ofcom Royal Mail Access pricing dispute page provides the regulatory background.
Industry reports now indicate that a revised increase of around 18% on average could take effect in December, although this should not be treated as a confirmed universal rate across every wholesale product.
This distinction is particularly important for businesses involved in bulk mail and sectors affected by Royal Mail NHS letter pricing.
The wholesale dispute is separate from the parcel increases that took effect on 5 October.
Should Businesses Switch Away From Royal Mail?
Not automatically.
The October increase makes it sensible to compare Royal Mail with alternatives such as Evri, InPost and DPD, but the cheapest headline rate is not always the lowest total fulfilment cost.
Businesses should compare:
- Parcel dimensions
- Weight limits
- Tracking
- Compensation
- Collection availability
- Delivery speed
- Geographic surcharges
- Failed-delivery handling
- Customer preference.
It may be cheaper to change Royal Mail service rather than change carrier entirely.
The £3.75 online Tracked 48 rate is a good example. Some sellers may save money simply by switching from standard online 2nd Class.
Should Sellers Increase Their Own Delivery Prices?
For many sellers, some repricing may be unavoidable.
Suppose a £20 product previously produced £4 profit after product cost, fees, packaging and delivery.
If postage increases by 45p and the seller absorbs the full amount, profit falls from £4 to £3.55.
That is an 11.25% reduction in profit contribution.
Businesses should therefore review:
- Marketplace shipping templates
- Free-delivery thresholds
- Postage-inclusive pricing
- Product bundles
- Packaging size
- Service selection
- Minimum order values.
Small sellers should pay particular attention to low-margin products where a 30p to 50p shipping increase represents a large proportion of the remaining profit.
What Should Businesses Do Now?
The Royal Mail price increase October 2026 should trigger a shipping-cost review rather than a simple blanket price rise.
Businesses should compare their most-used parcel types across online, branch, tracked, franked and account options.
They should also model the November Peak Surcharge before Christmas volumes accelerate.
The strongest immediate opportunity is likely to be correcting inefficient service choices. A seller paying £4.40 for an online 2nd Class small parcel, for example, should investigate whether the £3.75 Tracked 48 option meets the same shipping requirement.
For wholesale mailers, the position remains different. The original proposed Access increase has been withdrawn, while a revised December increase continues to develop.
FAQs
Did Royal Mail prices increase in October 2026?
Yes. New parcel, tracked, Signed For, Special Delivery and business-account rates took effect from 5 October 2026.
Did 1st Class stamps increase in October?
No. A standard 1st Class Letter stamp remains £1.80.
Is Tracked 48 cheaper than 2nd Class?
For an online small parcel up to 2kg, yes. Tracked 48 is £3.75 compared with £4.40 for standard 2nd Class.
When does the Royal Mail Peak Surcharge start?
The Peak Surcharge begins on 2 November 2026 and runs through 10 January 2027 on applicable business services.
Did the 25% wholesale Royal Mail rise happen?
No. The original Access price notice was withdrawn after Ofcom accepted a dispute. A smaller increase of around 18% has been reported for December, but businesses should wait for final confirmation of the applicable rates.