How digital automation can reduce hidden costs of traditional mail for revenues and benefits departments

Despite a digital-first agenda, a printed letter, form, or bill can still be the most reliable way for local authorities to communicate with recipients. Gaps in personal data, accessible formats, or personal preference often mean a revenues and benefits department still produces a high volume of printed mail. Whilst this is necessary, hidden costs that challenge budgets and efficiency lie beneath the surface. With rising postage rates and increasing pressure to operate sustainably, digital automation offers councils a clear path to cost-cutting and long-term operational improvements.

In this article, we will break down where traditional mail creates higher costs. We also look at how switching to Datagraphic’s digital solutions can transform council operations.

What are the hidden costs of traditional mail?

Postage and printing costs

Printing and posting letters is costly – especially for large-volume council tax and benefits communications. Spending on ink, paper, envelopes, and maintenance of mailing equipment adds up quickly.

To add to the pressures of already tight budgets, postage prices have continuously risen.

Since 2019, Royal Mail’s 1st and 2nd Class Letter rates for Mailmark® Franked and Business Account Mail have soared by 95% to 109%.

With more hikes expected in 2025 and the pressure of tight budgets, councils cannot avoid these rising costs.

Costs in contract management

Managing contracts with postal services, print vendors, and equipment suppliers is time-consuming and inefficient for UK councils. Manual tasks pull staff away from more strategic priorities. Therefore, juggling multiple agreements, supplier governance audits, performance reports, and (if still printing in-house) stock deliveries and equipment maintenance schedules adds additional workload. Revenue and benefits teams can miss opportunities to boost collections and ensure compliance, adding hidden costs. Streamlining mailing processes with digital automation frees up resources for councils, cuts admin, and focuses on delivering a better experience.

Manual processing inefficiencies

Regulatory communications must be dispatched on time and be 100% accurate. Producing physical mail for council tax, business rates, and benefits notifications is a time-consuming and error-prone task.

Where teams fold, insert, and mail items in-house, within their department or internal print room, there is an increased risk of errors. Missed or delayed communications can quickly lead to compliance issues, costly reprints, and disrupted revenue collection. Automating the process reduces labour and material costs and ensures timely, accurate delivery. As a result, councils stay compliant and maintain trust with their residents.

How do councils overspend on printed mail?

Councils often spend more than they need to on printed mail due to common but avoidable pitfalls.

When sending high volumes of printed communications, teams often order in bulk, purchasing more stationery and enclosures (like forms and leaflets) than are needed for that mailing. Whilst this avoids running out, councils can build up piles of unused stock, adding extra upfront costs, storage needs, and disposal costs when it becomes outdated.

Adding more invisible costs, processes easily become fragmented without a centralised mail system. Work is easily duplicated, and mail isn’t traceable, making managing collections and compliance harder. Consequently, with unpredictable mailing volumes, budgeting becomes a constant challenge – particularly subject to postage price rises.

Financial and environmental impact of manual processing vs. automated mail

Manual in-house mail processing comes with financial and environmental costs that councils can’t afford to overlook.

• More efficient processes: Datagraphic’s Aceni – a hybrid mail platform – streamlines the entire communication journey, from mailing pack creation to delivery. It also handles inbound documents where a response is required. Returned mail is received, scanned and digitised as data for teams to access faster
• Less labour: Tasks are more efficient, which cuts manual labour to reallocate staff to other more important tasks
• Lower costs: Councils can benefit from bulk postage discounts by working with a supplier like Datagraphic, seeing benefits from economies of scale in stationery costs
• Faster turnaround times: Automated mail solutions offer faster turnaround times, helping revenues and benefits teams stay compliant and responsive
• Less material consumption and waste: Switching to automated mail with a digital option reduces printing errors, duplicated printing, returned mail, wasted postage and paper usage
• A multichannel approach: Where digital contact information is available, Aceni can send an SMS and email notification to a digital envelope. Therefore, printed mail volumes can be reduced to only those who need it.
• Lower carbon emissions: By embracing automation, councils can support broader sustainability goals. Carbon-neutral mail suppliers like Datagraphic deliver public sector communications without a carbon footprint.

A multichannel approach to lower costs of traditional mail

Councils can simplify how they communicate bills to maximise revenue collection. Teams can post a physical envelope, choose a digital version, and use email and text alerts, all from a single file.

• Staff can load a file once and reach recipients via email, text, hosted digital envelope or physical post using one single platform
• If a recipient doesn’t view a time-critical document in a set number of days, teams can send digital envelopes with an automated printed copy.
• Residents can receive digital document summaries by email or SMS (containing key information from a document they will later receive by post). This early alert makes them aware to look out for mail they must respond to to improve engagement rates.

Immediate and long-term benefits of digital automation

Digital automation offers councils immediate budget relief and long-term sustainability.

In the shorter term, revenues and benefits departments can outsource the manual process of producing and sending physical mail. In doing so, councils can immediately lower operational costs, improve responsiveness and maximise council tax and business rates collections.

Looking longer term, councils can stay on top of regulations and future-proof operations with hybrid mail technology. Automating and centralising mail strengthens compliance and provides insights to optimise costs. For example, council teams can track and audit the process to see where staff are unnecessarily using expensive 1st Class postage. With an audit trail of document production and despatch, it becomes easier to evidence proof of production and postage should it be needed for any court proceedings.

Why choose Aceni?

If your department is looking for more efficient ways to handle and distribute outbound and inbound mail, Aceni by Datagraphic can help:

• Make document handling a breeze: Automate your communications and boost efficiency—without changing your existing templates. Aceni’s smart processing takes care of the heavy-lifting
• Simplify how you communicate: Send letters, emails, and text alerts all from one file. Whether digital or physical, your messages go out on time every time
• Cut those postage costs: Save money with address validation, postal sortation, and streamlined workflows for any class or volume of mail. No more overpaying or inefficiencies
• Stay in control: Monitor everything with real-time tracking, dashboard insights, and customisable reports, so you always know what’s happening with your mail
• Work smarter, not harder: Aceni’s cloud-based, system-agnostic solution supports agile working, updates hassle-free, and evolves with your council’s needs
• Reduce waste, save space: On-demand printing, accurate cost tracking, and UK-based support help you cut IT fees, avoid stationery waste, and free up valuable office space
• Support what matters: Partner with a provider like Datagraphic that will share your values: protecting information, supporting sustainability, and delivering social value to your community.

Conclusion

The hidden costs of traditional mail are more than just financial – they impact efficiency, sustainability, and service quality. By embracing Datagraphic’s digital automation solutions, revenues and benefits departments can unlock immediate cost savings.

The transition doesn’t just make financial sense; it’s a smart move toward a more agile, sustainable and cost-effective future.

Discover how Datagraphic can support digital transformation in councils.