The agreement means that all letters posted by the council will cost 15.75p, rather than the usual charge of 25p.
Birmingham sends out around 8m items a year and the authority said that it would save around £400,000 a year through the scheme.
The council also aims to collaborate with other public and private sector organisations so those who do not generate enough mail to have their own Condition 9 agreement can save via the Council’s scheme.
Birmingham council sorts its post on an NPI Vsort, bought from Kern in January 2009, which allowed them to join the scheme.
Birmingham council in mail savings
Birmingham City Council has become the first local authority in the UK to sign up to a Royal Mail 'Condition 9' access agreement, cutting the cost of its mailing.