diff --git a/app/main/forms.py b/app/main/forms.py
index 0ae859fea..79a935ae5 100644
--- a/app/main/forms.py
+++ b/app/main/forms.py
@@ -447,6 +447,16 @@ class EmailTemplateForm(BaseTemplateForm):
 
 
 class LetterTemplateForm(EmailTemplateForm):
+    postage = RadioField(
+        'Choose postage',
+        choices=[
+            ('first', 'First class'),
+            ('second', 'Second class'),
+            ('None', "Service default"),
+        ],
+        validators=[DataRequired()],
+        default='None'
+    )
 
     subject = TextAreaField(
         u'Main heading',
diff --git a/app/main/views/service_settings.py b/app/main/views/service_settings.py
index 39583386b..92f1bedbf 100644
--- a/app/main/views/service_settings.py
+++ b/app/main/views/service_settings.py
@@ -297,6 +297,14 @@ def service_switch_can_edit_folders(service_id):
     return redirect(url_for('.service_settings', service_id=service_id))
 
 
+@main.route("/services/<service_id>/service-settings/can-choose-postage")
+@login_required
+@user_is_platform_admin
+def service_switch_can_choose_postage(service_id):
+    current_service.switch_permission('choose_postage')
+    return redirect(url_for('.service_settings', service_id=service_id))
+
+
 @main.route("/services/<service_id>/service-settings/archive", methods=['GET', 'POST'])
 @login_required
 @user_has_permissions('manage_service')
diff --git a/app/main/views/templates.py b/app/main/views/templates.py
index ec3c39a56..191cac718 100644
--- a/app/main/views/templates.py
+++ b/app/main/views/templates.py
@@ -76,6 +76,7 @@ def view_template(service_id, template_id):
             show_recipient=True,
             page_count=get_page_count_for_letter(template),
         ),
+        template_postage=template["postage"],
         default_letter_contact_block_id=default_letter_contact_block_id,
     )
 
@@ -570,21 +571,29 @@ def edit_service_template(service_id, template_id):
     template = service_api_client.get_service_template(service_id, template_id)['data']
     template['template_content'] = template['content']
     form = form_objects[template['template_type']](**template)
-
     if form.validate_on_submit():
         if form.process_type.data != template['process_type']:
             abort_403_if_not_admin_user()
 
         subject = form.subject.data if hasattr(form, 'subject') else None
-        new_template = get_template({
+
+        new_template_data = {
             'name': form.name.data,
             'content': form.template_content.data,
             'subject': subject,
             'template_type': template['template_type'],
             'id': template['id'],
             'process_type': form.process_type.data,
-            'reply_to_text': template['reply_to_text']
-        }, current_service)
+            'reply_to_text': template['reply_to_text'],
+        }
+        if current_service.has_permission("choose_postage") and template["template_type"] == "letter":
+            postage = {"postage": form.postage.data}
+        else:
+            postage = {}
+
+        new_template_data.update(postage)
+
+        new_template = get_template(new_template_data, current_service)
         template_change = get_template(template, current_service).compare_to(new_template)
         if template_change.placeholders_added and not request.form.get('confirm'):
             example_column_headings = (
@@ -611,7 +620,8 @@ def edit_service_template(service_id, template_id):
                 form.template_content.data,
                 service_id,
                 subject,
-                form.process_type.data
+                form.process_type.data,
+                postage=postage.get("postage")
             )
         except HTTPError as e:
             if e.status_code == 400:
@@ -642,6 +652,7 @@ def edit_service_template(service_id, template_id):
         return render_template(
             'views/edit-{}-template.html'.format(template['template_type']),
             form=form,
+            can_choose_postage=current_service.has_permission("choose_postage"),
             template_id=template_id,
             template_type=template['template_type'],
             heading_action='Edit',
diff --git a/app/navigation.py b/app/navigation.py
index 2fb37551d..8cf8c514b 100644
--- a/app/navigation.py
+++ b/app/navigation.py
@@ -241,6 +241,7 @@ class HeaderNavigation(Navigation):
         'service_set_sms_prefix',
         'service_settings',
         'service_sms_senders',
+        'service_switch_can_choose_postage',
         'service_switch_can_edit_folders',
         'service_switch_can_send_email',
         'service_switch_can_send_precompiled_letter',
@@ -475,6 +476,7 @@ class MainNavigation(Navigation):
         'service_dashboard_updates',
         'service_delete_email_reply_to',
         'service_delete_sms_sender',
+        'service_switch_can_choose_postage',
         'service_switch_can_edit_folders',
         'service_switch_can_send_email',
         'service_switch_can_send_precompiled_letter',
@@ -702,6 +704,7 @@ class CaseworkNavigation(Navigation):
         'service_set_sms_prefix',
         'service_settings',
         'service_sms_senders',
+        'service_switch_can_choose_postage',
         'service_switch_can_edit_folders',
         'service_switch_can_send_email',
         'service_switch_can_send_precompiled_letter',
@@ -937,6 +940,7 @@ class OrgNavigation(Navigation):
         'service_set_sms_prefix',
         'service_settings',
         'service_sms_senders',
+        'service_switch_can_choose_postage',
         'service_switch_can_edit_folders',
         'service_switch_can_send_email',
         'service_switch_can_send_precompiled_letter',
diff --git a/app/notify_client/service_api_client.py b/app/notify_client/service_api_client.py
index 7af14425f..78f19896c 100644
--- a/app/notify_client/service_api_client.py
+++ b/app/notify_client/service_api_client.py
@@ -153,7 +153,9 @@ class ServiceAPIClient(NotifyAdminAPIClient):
     @cache.delete('service-{service_id}-templates')
     @cache.delete('template-{id_}-version-None')
     @cache.delete('template-{id_}-versions')
-    def update_service_template(self, id_, name, type_, content, service_id, subject=None, process_type=None):
+    def update_service_template(
+        self, id_, name, type_, content, service_id, subject=None, process_type=None, postage=None
+    ):
         """
         Update a service template.
         """
@@ -172,6 +174,14 @@ class ServiceAPIClient(NotifyAdminAPIClient):
             data.update({
                 'process_type': process_type
             })
+        if postage in ["first", "second"]:
+            data.update({
+                'postage': postage
+            })
+        elif postage == 'None':
+            data.update({
+                'postage': None
+            })
         data = _attach_current_user(data)
         endpoint = "/service/{0}/template/{1}".format(service_id, id_)
         return self.post(endpoint, data)
diff --git a/app/templates/views/edit-letter-template.html b/app/templates/views/edit-letter-template.html
index 4d0c62163..353ae4721 100644
--- a/app/templates/views/edit-letter-template.html
+++ b/app/templates/views/edit-letter-template.html
@@ -1,6 +1,7 @@
 {% extends "withnav_template.html" %}
 {% from "components/textbox.html" import textbox %}
 {% from "components/page-footer.html" import page_footer %}
+{% from "components/radios.html" import radios %}
 {% from "components/form.html" import form_wrapper %}
 
 {% block service_page_title %}
@@ -17,6 +18,9 @@
       <div class="grid-row">
         <div class="column-five-sixths">
           {{ textbox(form.name, width='1-1', hint='Your recipients won’t see this', rows=10) }}
+          {% if can_choose_postage %}
+            {{ radios(form.postage, hint='Go to Settings to change default postage for your service') }}
+          {% endif %}
           {{ textbox(form.subject, width='1-1', highlight_tags=True, rows=2) }}
           {{ textbox(form.template_content, highlight_tags=True, width='1-1', rows=8) }}
           {{ page_footer(
diff --git a/app/templates/views/service-settings.html b/app/templates/views/service-settings.html
index 5470d37f2..576ab201f 100644
--- a/app/templates/views/service-settings.html
+++ b/app/templates/views/service-settings.html
@@ -380,6 +380,11 @@
              {{ 'Stop editing folders' if 'edit_folders' in current_service.permissions else 'Allow to edit folders' }}
            </a>
         </li>
+        <li class="bottom-gutter">
+           <a href="{{ url_for('.service_switch_can_choose_postage', service_id=current_service.id) }}" class="button">
+             {{ 'Stop choosing postage per template' if 'choose_postage' in current_service.permissions else 'Allow to choose postage per template' }}
+           </a>
+        </li>
         {% if current_service.active %}
           <li class="bottom-gutter">
             <a href="{{ url_for('.archive_service', service_id=current_service.id) }}" class="button">
diff --git a/app/templates/views/templates/_template.html b/app/templates/views/templates/_template.html
index 333d35c1c..61b75a257 100644
--- a/app/templates/views/templates/_template.html
+++ b/app/templates/views/templates/_template.html
@@ -21,6 +21,13 @@
                 Send
               </a>
             </div>
+            <div class="column-whole">
+            {% if current_service.has_permission("choose_postage") and template_postage %}
+              <h2 class="heading-small heading-inline">Postage</h2>: {{ template_postage }} class
+            {% elif (current_service.has_permission("choose_postage") and not template_postage) or not current_service.has_permission("choose_postage") %}
+              <h2 class="heading-small heading-inline">Postage</h2>: {{ current_service.postage }} class
+            {% endif %}
+            </div>
           {% endif %}
         {% else %}
           {% if current_user.has_permissions('send_messages', restrict_admin_usage=True) %}
diff --git a/tests/__init__.py b/tests/__init__.py
index c65fb0996..458873f55 100644
--- a/tests/__init__.py
+++ b/tests/__init__.py
@@ -214,6 +214,7 @@ def template_json(service_id,
                   reply_to=None,
                   reply_to_text=None,
                   is_precompiled_letter=False,
+                  postage=None
                   ):
     template = {
         'id': id_,
@@ -230,6 +231,7 @@ def template_json(service_id,
         'reply_to_text': reply_to_text,
         'is_precompiled_letter': is_precompiled_letter,
         'folder': None,
+        'postage': postage
     }
     if content is None:
         template['content'] = "template content"
diff --git a/tests/app/main/views/service_settings/test_service_setting_permissions.py b/tests/app/main/views/service_settings/test_service_setting_permissions.py
index 03317ce35..7403082e9 100644
--- a/tests/app/main/views/service_settings/test_service_setting_permissions.py
+++ b/tests/app/main/views/service_settings/test_service_setting_permissions.py
@@ -48,6 +48,15 @@ def get_service_settings_page(
     ({'permissions': ['edit_folders']}, '.service_switch_can_edit_folders', {}, 'Stop editing folders'),
     ({'permissions': []}, '.service_switch_can_edit_folders', {}, 'Allow to edit folders'),
 
+
+    (
+        {'permissions': ['choose_postage']},
+        '.service_switch_can_choose_postage',
+        {},
+        'Stop choosing postage per template'
+    ),
+    ({'permissions': []}, '.service_switch_can_choose_postage', {}, 'Allow to choose postage per template'),
+
     ({'permissions': ['sms']}, '.service_set_inbound_number', {'set_inbound_sms': True}, 'Allow inbound sms'),
 
     ({'active': True}, '.archive_service', {}, 'Archive service'),
diff --git a/tests/app/main/views/test_templates.py b/tests/app/main/views/test_templates.py
index 09dee0ec0..d05edb241 100644
--- a/tests/app/main/views/test_templates.py
+++ b/tests/app/main/views/test_templates.py
@@ -1,3 +1,4 @@
+import re
 from datetime import datetime
 from unittest.mock import ANY, Mock
 
@@ -401,6 +402,127 @@ def test_user_with_only_send_and_view_sees_letter_page(
     assert page.select_one('h1').text.strip() == 'Two week reminder'
 
 
+@pytest.mark.parametrize("permissions,template_postage,expected_result", [
+    (["choose_postage", "letter"], "first", "first"),
+    (["choose_postage", "letter"], None, "second"),
+    (["letter"], "first", "second"),
+])
+def test_view_letter_template_displays_postage_dynamically_based_on_service_permissions_and_template_postage(
+    client_request,
+    service_one,
+    mock_get_service_templates,
+    mock_get_template_folders,
+    single_letter_contact_block,
+    mock_has_jobs,
+    active_user_with_permissions,
+    mocker,
+    fake_uuid,
+    permissions,
+    template_postage,
+    expected_result
+):
+    mocker.patch('app.main.views.templates.get_page_count_for_letter', return_value=1)
+    service_one['permissions'] = permissions
+    client_request.login(active_user_with_permissions)
+    mock_get_service_letter_template(mocker, postage=template_postage)
+    page = client_request.get(
+        'main.view_template',
+        service_id=SERVICE_ONE_ID,
+        template_id=fake_uuid,
+    )
+
+    assert "Postage: {} class".format(expected_result) in page.text
+
+
+def test_view_non_letter_template_does_not_display_postage(
+    logged_in_client,
+    mock_get_service_template,
+    mock_get_template_folders,
+    service_one,
+    fake_uuid,
+):
+
+    response = logged_in_client.get(url_for(
+        '.view_template',
+        service_id=service_one['id'],
+        template_id=fake_uuid))
+
+    assert response.status_code == 200
+
+    page = BeautifulSoup(response.data.decode('utf-8'), 'html.parser')
+    assert "Postage" not in page.text
+
+
+@pytest.mark.parametrize("permissions, expected_result", [
+    (["choose_postage", "letter"], True),
+    (["letter"], False),
+])
+def test_edit_letter_templates_postage_choice_visibility_and_default(
+    client_request,
+    service_one,
+    active_user_with_permissions,
+    mocker,
+    fake_uuid,
+    permissions,
+    expected_result
+):
+    mocker.patch('app.main.views.templates.get_page_count_for_letter', return_value=1)
+    service_one['permissions'] = permissions
+    client_request.login(active_user_with_permissions)
+    mock_get_service_letter_template(mocker)
+    page = client_request.get(
+        'main.edit_service_template',
+        service_id=SERVICE_ONE_ID,
+        template_id=fake_uuid,
+    )
+    assert bool(page.find(string=re.compile("Choose postage"))) is expected_result
+
+    if expected_result:
+        assert page.select('input[checked]')[0].attrs["value"] == 'None'
+
+
+@pytest.mark.parametrize("permissions, expected_result", [
+    (["choose_postage", "letter"], "first"),
+    (["letter"], None),
+])
+def test_edit_letter_templates_postage_permissions(
+    logged_in_client,
+    service_one,
+    mocker,
+    fake_uuid,
+    mock_update_service_template,
+    permissions,
+    expected_result
+):
+    service_one['permissions'] = permissions
+    mock_get_service_letter_template(mocker)
+    template_id = fake_uuid
+
+    logged_in_client.post(
+        url_for(
+            'main.edit_service_template',
+            service_id=SERVICE_ONE_ID,
+            template_id=template_id
+        ),
+        data={
+            'name': 'Two week reminder',
+            'template_content': "Some content",
+            'subject': 'Subject',
+            'postage': 'first'
+        }
+    )
+    mock_update_service_template.assert_called_with(
+        template_id,
+        'Two week reminder',
+        'letter',
+        "Some content",
+        SERVICE_ONE_ID,
+        'Subject',
+        'normal',
+        postage=expected_result
+    )
+
+
 @pytest.mark.parametrize('permissions, links_to_be_shown, permissions_warning_to_be_shown', [
     (
         ['view_activity'],
@@ -915,7 +1037,7 @@ def test_should_redirect_when_saving_a_template(
     assert response.location == url_for(
         '.view_template', service_id=service['id'], template_id=template_id, _external=True)
     mock_update_service_template.assert_called_with(
-        template_id, name, 'sms', content, service['id'], None, 'normal')
+        template_id, name, 'sms', content, service['id'], None, 'normal', postage=None)
 
 
 def test_should_edit_content_when_process_type_is_priority_not_platform_admin(
@@ -951,7 +1073,8 @@ def test_should_edit_content_when_process_type_is_priority_not_platform_admin(
         "new template <em>content</em> with & entity",
         service['id'],
         None,
-        'priority'
+        'priority',
+        postage=None
     )
 
 
@@ -1037,9 +1160,10 @@ def test_should_403_when_create_template_with_process_type_of_priority_for_non_p
     mock_update_service_template.called == 0
 
 
-@pytest.mark.parametrize('template_mock, expected_paragraphs', [
+@pytest.mark.parametrize('template_mock, template_type, expected_paragraphs', [
     (
         mock_get_service_email_template,
+        "email",
         [
             'You removed ((date))',
             'You added ((name))',
@@ -1048,6 +1172,7 @@ def test_should_403_when_create_template_with_process_type_of_priority_for_non_p
     ),
     (
         mock_get_service_letter_template,
+        "letter",
         [
             'You removed ((date))',
             'You added ((name))',
@@ -1067,6 +1192,7 @@ def test_should_show_interstitial_when_making_breaking_change(
     fake_uuid,
     mocker,
     template_mock,
+    template_type,
     expected_paragraphs,
 ):
     template_mock(
@@ -1076,17 +1202,22 @@ def test_should_show_interstitial_when_making_breaking_change(
     )
     service_id = fake_uuid
     template_id = fake_uuid
+    data = {
+        'id': template_id,
+        'name': "new name",
+        'template_content': "hello lets talk about ((thing))",
+        'template_type': template_type,
+        'subject': 'reminder \'" <span> & ((name))',
+        'service': service_id,
+        'process_type': 'normal'
+    }
+
+    if template_type == "letter":
+        data["postage"] = 'None'
+
     response = logged_in_client.post(
         url_for('.edit_service_template', service_id=service_id, template_id=template_id),
-        data={
-            'id': template_id,
-            'name': "new name",
-            'template_content': "hello lets talk about ((thing))",
-            'template_type': 'email',
-            'subject': 'reminder \'" <span> & ((name))',
-            'service': service_id,
-            'process_type': 'normal'
-        }
+        data=data
     )
 
     assert response.status_code == 200
@@ -1232,7 +1363,7 @@ def test_should_redirect_when_saving_a_template_email(
         template_id=template_id,
         _external=True)
     mock_update_service_template.assert_called_with(
-        template_id, name, 'email', content, service_id, subject, 'normal')
+        template_id, name, 'email', content, service_id, subject, 'normal', postage=None)
 
 
 def test_should_show_delete_template_page_with_time_block(
diff --git a/tests/conftest.py b/tests/conftest.py
index 282cd22f2..db5389bb0 100644
--- a/tests/conftest.py
+++ b/tests/conftest.py
@@ -880,8 +880,8 @@ def mock_get_service_email_template_without_placeholders(mocker):
 
 
 @pytest.fixture(scope='function')
-def mock_get_service_letter_template(mocker, content=None, subject=None):
-    def _get(service_id, template_id, version=None):
+def mock_get_service_letter_template(mocker, content=None, subject=None, postage=None):
+    def _get(service_id, template_id, version=None, postage=postage):
         template = template_json(
             service_id,
             template_id,
@@ -889,6 +889,7 @@ def mock_get_service_letter_template(mocker, content=None, subject=None):
             "letter",
             content or "Template <em>content</em> with & entity",
             subject or "Subject",
+            postage=postage,
         )
         return {'data': template}
 
@@ -910,8 +911,8 @@ def mock_create_service_template(mocker, fake_uuid):
 
 @pytest.fixture(scope='function')
 def mock_update_service_template(mocker):
-    def _update(id_, name, type_, content, service, subject=None, process_type=None):
-        template = template_json(service, id_, name, type_, content, subject, process_type)
+    def _update(id_, name, type_, content, service, subject=None, process_type=None, postage=None):
+        template = template_json(service, id_, name, type_, content, subject, process_type, postage)
         return {'data': template}
 
     return mocker.patch(
@@ -939,7 +940,7 @@ def mock_create_service_template_content_too_big(mocker):
 
 @pytest.fixture(scope='function')
 def mock_update_service_template_400_content_too_big(mocker):
-    def _update(id_, name, type_, content, service, subject=None, process_type=None):
+    def _update(id_, name, type_, content, service, subject=None, process_type=None, postage=None):
         json_mock = Mock(return_value={
             'message': {'content': ["Content has a character count greater than the limit of 459"]},
             'result': 'error'