Levy gifting fund will support growth for small businesses
Royal Mail has launched a £1 million small business apprenticeship levy gifting fund, aimed at helping smaller businesses to grow.
The apprenticeship levy is a UK government initiative introduced in April 2017 to help fund apprenticeships and improve workforce skills across the country.
It requires UK employers with an annual pay bill of over £3 million to contribute 0.5% of their total payroll into a digital apprenticeship service account, which they can then use to pay for apprenticeship training and assessment.
The aim of this initiative is to encourage employers to invest in high-quality training, create more apprenticeship opportunities and address skill shortages in key sectors.
As per guidance from the Department for Education, large employers that pay the apprenticeship levy can choose to transfer up to 50% of their levy funds each year to other businesses, to pay for their apprenticeship training and assessment.
Royal Mail’s decision to allocate £1m from its levy funds to small businesses forms part of its new set of commitments to support growth, which also includes the relaunch of its Small Business Hub containing advice and tailored content focused on fuelling growth.
A recent report from Royal Mail and the British Chambers of Commerce, entitled ‘Small businesses: delivering growth for Britain’, found that only 36% of UK businesses expect to grow in 2025, while 18% expect to downsize their businesses this year.
In a survey of 1,297 goods and services businesses across the UK, 69% of respondents identified government policies such as taxation and employment regulation as a barrier to growth. Meanwhile, 39% cited the domestic market and customer demand as a growth inhibitor, and 25% cited access to 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.”
Shevaun Haviland, director general of the British Chambers of Commerce, added: “SMEs are the beating heart of the UK economy, driving growth and employing millions of people across the country.
“To really understand what businesses are thinking, we’re delighted to have partnered with Royal Mail on roundtable events across our chamber network, alongside survey work carried out by our award-winning insights unit.
“Royal Mail’s support for small business, with a particular focus on skills, can help make a real difference in local communities across the UK.”
More Royal Mail news here: https://www.royalmail.com/sustainability/latest-news
https://couriernews.co.uk/blog/royal-mail-launches-1m-apprenticeship/