How Psychology Practices Should Word a Fee Increase Letter to Existing Clients
Here's a conversation most practices put off 💖: telling existing clients about a fee increase. It's uncomfortable, especially in an ongoing therapeutic relationship, but avoiding it or softening it into vagueness tends to create more anxiety than a clear, respectful letter ever would.
What Most Practices Get Wrong
The common mistake is either delivering the news too close to the effective date, leaving clients no time to plan, or wrapping the message in so much justification it starts to feel apologetic and uncertain. A calm, clear, reasonably-timed letter reads as a practice run with confidence and care — both of which matter to clients in this kind of relationship.
The Template
"I'm writing to let you know that from [date], my session fee will be $[new fee], up from $[current fee]. I wanted to give you as much notice as possible.
I understand any change to fees is worth thinking through, and I'm happy to talk about what this means for your care if that would help — including your Medicare rebate, if applicable, and session frequency options.
Thank you for the trust you've placed in our work together. I'll see you at our next session."
The Mechanics: Timing and Delivery
Give as much notice as your business genuinely allows — six to eight weeks is common practice, though longer is even better where possible. Send in writing so the client has something to reference, and be prepared for a brief in-session mention as a natural follow-up, not the primary announcement channel.
Mistakes to Avoid
- Giving short notice that leaves clients no time to plan or ask questions
- Over-justifying the increase in a way that reads as uncertain rather than confident
- Only announcing in-session with no written record for the client to refer back to
- Applying inconsistent notice periods or fees across similar clients
Frequently asked questions
How much notice is genuinely reasonable?
There's no fixed legal minimum, but six to eight weeks is common in practice, and longer notice is generally received better for clients on tighter budgets.
Should the letter mention Medicare rebate amounts?
If a Medicare rebate applies, briefly noting it (without restating exact current rebate figures, which change) can help clients understand their actual out-of-pocket change.
What if a long-standing client can't afford the new fee?
Many practitioners retain a small number of clients at a legacy or reduced fee where appropriate — this is a individual clinical and business decision, not something to default to broadly.
Is it better to raise fees gradually or in one increase?
Both approaches are used in practice — gradual increases can feel less jarring, while a single clear increase with long notice can feel more transparent. Either works if communicated well.
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