Royal Mail has today launched a new £1 million apprenticeship levy gifting fund to help small businesses across the UK tackle skills shortages and unlock growth opportunities.
The initiative, announced alongside the publication of a new report by the British Chambers of Commerce (BCC) and Royal Mail, follows in-depth research which found that a quarter of small firms are struggling to recruit skilled workers — a major barrier to their expansion.
The report, titled Small businesses: delivering growth for Britain, surveyed over 1,200 small firms and revealed that 35% expect to grow in the next 12 months, while 41% predict business as usual. However, 22% anticipate downsizing, with labour market challenges and access to advice identified as key concerns.
In response, Royal Mail’s £1m levy fund will be made available to registered businesses with up to 250 employees, allowing them to apply the funding towards any government-recognised apprenticeship course. This includes both traditional skills training and more modern, digital-focused programmes such as artificial intelligence and e-commerce technology.
The company, which is required to pay the apprenticeship levy due to its size, has opted to redistribute some of its levy allocation to help smaller firms enhance their workforce capabilities.
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 fund launch forms part of Royal Mail Means Business, a wider campaign supporting start-ups and small companies through a dedicated Small Business Hub. The platform includes tailored advice, tools, and guidance on e-commerce, exporting, and technology adoption to help firms scale up effectively.
Shevaun Haviland, Director General of the British Chambers of Commerce, praised the move: “SMEs are the beating heart of the UK economy, driving growth and employing millions of people across the country. Royal Mail’s support for small business, with a particular focus on skills, can help make a real difference in local communities.”
Postal Services Minister Justin Madders added: “Small and medium-sized businesses are the innovators and job creators that power our high streets, drive our exports, and are the heart of communities across the country.”
The apprenticeship gifting scheme is now open for applications, with more details and eligibility criteria available through Royal Mail’s online Small Business Hub.
With the UK’s 5.6 million small businesses contributing over half of the country’s employment and economic output, today’s announcement is seen as a timely intervention to bolster the sector during a period of rising wage costs and economic uncertainty.