diff --git a/app/models.py b/app/models.py
index bc1d331f0..555a27ddd 100644
--- a/app/models.py
+++ b/app/models.py
@@ -257,6 +257,7 @@ LETTERS_AS_PDF = 'letters_as_pdf'
 PRECOMPILED_LETTER = 'precompiled_letter'
 UPLOAD_DOCUMENT = 'upload_document'
 EDIT_FOLDERS = 'edit_folders'
+CHOOSE_POSTAGE = 'choose_postage'
 
 SERVICE_PERMISSION_TYPES = [
     EMAIL_TYPE,
@@ -270,6 +271,7 @@ SERVICE_PERMISSION_TYPES = [
     PRECOMPILED_LETTER,
     UPLOAD_DOCUMENT,
     EDIT_FOLDERS,
+    CHOOSE_POSTAGE
 ]
 
 
@@ -762,6 +764,15 @@ class TemplateBase(db.Model):
     archived = db.Column(db.Boolean, nullable=False, default=False)
     hidden = db.Column(db.Boolean, nullable=False, default=False)
     subject = db.Column(db.Text)
+    postage = db.Column(db.String, nullable=True)
+    CheckConstraint("""
+        CASE WHEN template_type = 'letter' THEN
+            postage in ('first', 'second') OR
+            postage is null
+        ELSE
+            postage is null
+        END
+    """)
 
     @declared_attr
     def service_id(cls):
@@ -861,6 +872,7 @@ class TemplateBase(db.Model):
                 }
                 for key in self._as_utils_template().placeholders
             },
+            "postage": self.postage,
         }
 
         return serialized
diff --git a/migrations/versions/0248_enable_choose_postage.py b/migrations/versions/0248_enable_choose_postage.py
new file mode 100644
index 000000000..b72d6749f
--- /dev/null
+++ b/migrations/versions/0248_enable_choose_postage.py
@@ -0,0 +1,54 @@
+"""
+
+Revision ID: 0248_enable_choose_postage
+Revises: 0247_another_letter_org
+Create Date: 2018-12-14 12:09:31.375634
+
+"""
+from alembic import op
+import sqlalchemy as sa
+
+
+revision = '0248_enable_choose_postage'
+down_revision = '0247_another_letter_org'
+
+
+def upgrade():
+    # ### commands auto generated by Alembic - please adjust! ###
+    op.execute("INSERT INTO service_permission_types VALUES ('choose_postage')")
+    op.add_column('templates', sa.Column('postage', sa.String(), nullable=True))
+    op.add_column('templates_history', sa.Column('postage', sa.String(), nullable=True))
+    op.execute("""
+        ALTER TABLE templates ADD CONSTRAINT "chk_templates_postage_null"
+        CHECK (
+            CASE WHEN template_type = 'letter' THEN
+                postage in ('first', 'second') OR
+                postage is null
+            ELSE
+                postage is null
+            END
+        )
+    """)
+    op.execute("""
+        ALTER TABLE templates_history ADD CONSTRAINT "chk_templates_history_postage_null"
+        CHECK (
+            CASE WHEN template_type = 'letter' THEN
+                postage in ('first', 'second') OR
+                postage is null
+            ELSE
+                postage is null
+            END
+        )
+    """)
+    # ### end Alembic commands ###
+
+
+def downgrade():
+    # ### commands auto generated by Alembic - please adjust! ###
+    op.drop_constraint('chk_templates_history_postage_null', 'templates_history', type_='check')
+    op.drop_constraint('chk_templates_postage_null', 'templates', type_='check')
+    op.drop_column('templates_history', 'postage')
+    op.drop_column('templates', 'postage')
+    op.execute("DELETE FROM service_permissions WHERE permission = 'choose_postage'")
+    op.execute("DELETE FROM service_permission_types WHERE name = 'choose_postage'")
+    # ### end Alembic commands ###
diff --git a/tests/app/dao/test_templates_dao.py b/tests/app/dao/test_templates_dao.py
index b3d27a6d6..d86cec7a0 100644
--- a/tests/app/dao/test_templates_dao.py
+++ b/tests/app/dao/test_templates_dao.py
@@ -1,6 +1,7 @@
 from datetime import datetime
 
 from freezegun import freeze_time
+from sqlalchemy.exc import SQLAlchemyError
 from sqlalchemy.orm.exc import NoResultFound
 import pytest
 
@@ -523,3 +524,37 @@ def test_get_multiple_template_details_returns_templates_for_list_of_ids(sample_
     assert res[0].template_type
     assert res[0].name
     assert not res[0].is_precompiled_letter
+
+
+@pytest.mark.parametrize("template_type,postage", [('letter', 'third'), ('sms', 'second')])
+def test_template_postage_constraint_on_create(sample_service, sample_user, template_type, postage):
+    data = {
+        'name': 'Sample Template',
+        'template_type': template_type,
+        'content': "Template content",
+        'service': sample_service,
+        'created_by': sample_user,
+        'postage': postage
+    }
+    template = Template(**data)
+    with pytest.raises(expected_exception=SQLAlchemyError):
+        dao_create_template(template)
+
+
+def test_template_postage_constraint_on_update(sample_service, sample_user):
+    data = {
+        'name': 'Sample Template',
+        'template_type': "letter",
+        'content': "Template content",
+        'service': sample_service,
+        'created_by': sample_user,
+        'postage': 'second'
+    }
+    template = Template(**data)
+    dao_create_template(template)
+    created = dao_get_all_templates_for_service(sample_service.id)[0]
+    assert created.name == 'Sample Template'
+
+    created.postage = 'third'
+    with pytest.raises(expected_exception=SQLAlchemyError):
+        dao_update_template(created)
diff --git a/tests/app/v2/template/test_get_template.py b/tests/app/v2/template/test_get_template.py
index 3be2ce889..900621db7 100644
--- a/tests/app/v2/template/test_get_template.py
+++ b/tests/app/v2/template/test_get_template.py
@@ -41,6 +41,7 @@ def test_get_template_by_id_returns_200(client, sample_service, tmp_type, expect
         "subject": expected_subject,
         'name': expected_name,
         'personalisation': {},
+        'postage': None,
     }
 
     assert json_response == expected_response