Royal Mail launches £1m apprenticeship levy fund to support small businesses

Royal Mail has launched a £1m apprenticeship levy gifting fund to help small businesses invest in skills and workforce development.

The move forms part of a wider set of commitments from the company to support small business growth, including the relaunch of its Small Business Hub, which provides tailored advice and content.

Under the Government’s apprenticeship levy rules, larger employers can transfer up to 50% of their annual levy contributions to smaller firms to fund training and assessment.

Royal Mail’s decision to allocate £1m of its funds to support these transfers reflects growing concern over access to skilled workers.

Alistair Cochrane, interim CEO of Royal Mail, said: “We are hugely proud of our role in helping small businesses across the UK, but we want to go further in helping them to thrive in today’s competitive market.

“The research shows small businesses have sent a clear message that they need more support, particularly in accessing workers, exporting and clearer advice.

“The commitments we are making, including our £1m apprenticeship levy gifting fund and new Small Business Hub, are designed to target support where it’s needed.”

The announcement follows the publication of a joint report from Royal Mail and the British Chambers of Commerce, which found that only 36% of UK businesses expect to grow in 2025, while 18% expect to downsize this year. Barriers to growth included Government policy (69%), domestic demand (39%) and access to workers (25%).