Royal Mail outlines changes to Mailing House Scheme

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Direct mail printers are set to lose the 1% rebate on postal costs offered by Royal Mail for the quality of mail presentation from 1 October, following changes to the Mailing House Scheme.

Royal Mail plans to drop the 1% base tier fee, because it has achieved its goal in driving improved quality of mailings, although it will retain the 0.5% discount available for achieving set environmental goals, such as ISO 14001 accreditation.

According to Royal Mail, the current scheme is changing as it has "run its course". The operator said that it has been successful in driving improved quality and a renewed focus on the environment would make the scheme more accessible to smaller mailing houses.

Royal Mail is also pushing its 'Partner in Growth' scheme, which offers commission of between 1% and 3%, dependant on the value of the mailing, to companies referring new business from both new and existing clients. Payments are only made for a maximum of 24 months.

Despite a renewed focus on referrals and the environment, one mailing house source said the changes could prove detrimental for mailing output.

"When the 1% goes I wonder if the quality of what is presented to Royal Mail from mailing house will drop as there is no incentive," they added.