The £2bn Kickstart Scheme Opens

The £2 billion Kickstart Scheme launched on 2nd September 2020 and is now open to any employer.

The DWP has produced A Guide for Employers and there is a page for young people on the jobhelp website here.

Some key details:

  • On top of the wage subsidy, £1,500 per job placement available for setup costs, support and training.
  • Applications are for minimum 30 job placements. Employers can partner with other orgs to reach the minimum number.
  • If your organisation is creating more than 30 job placements as part of the #Kickstart Scheme, you can submit your application directly here https://www.apply-kickstart-grant-employer.service.gov.uk
  • If your organisation is creating fewer than 30 Kickstart job placements, you must partner with others which could include:
    • similar employers
    • local authorities
    • trade bodies
    • registered charities

If you are a representative applying on behalf of a group of employers, you can get £300 of funding to support associated admin costs. More information about being a representative is here


The Kickstart Scheme

The Kickstart Scheme is a £2 billion fund to create hundreds of thousands of high quality 6-month work placements for young people aged 16-24, who are claiming Universal Credit.

Employers of all sizes looking to create quality jobs for young people can apply. Through the scheme, all organisations across the private, public and voluntary sectors will be able to access a large pool of young people with potential, ready for an opportunity.

The Government will fully fund each ‘Kickstart’ job – paying 100% of the relevant National Minimum Wage for 25 hours a week, plus the associated employer National Insurance contributions and employer minimum automatic enrolment contributions. There will also be funding available to support young people to develop new skills and to help them move into sustained employment after they have completed their Kickstart Scheme funded job.

Tracy Fishwick, Managing Director at Transform Lives Company, said:

“This is a very significant intervention in the labour market. It provides the opportunity to support the life chances of hundreds of thousands of young people who otherwise may be scarred by long-term unemployment.

“The best of Kickstart will ensure the investment works as hard as it can for a good and fair economy, that it works for the young people who need it the most and that it prevents short-term, low quality, cheap labour”.

Sam Windett, Director of Policy at Impetus and Chair of the Youth Employment Group says: 

“Young people have been hit hardest in the jobs market, with nearly one in seven in the benefit count and youth unemployment due to rise further as furlough unwinds.

“As the government’s Kickstart scheme launches, it’s “job starting” not “job done”.

“Employers, intermediaries and jobcentres have to get this right to ensure there are quality opportunities for the young people who need them.”

Read an article in FE NEWS ‘Kickstart Scheme Opens – New £2bn scheme will create hundreds of thousands of new jobs for young people’ here. 

You can find further information on the Kickstart Scheme at www.gov.uk/kickstart

Delay to Start of KICKSTART Scheme

BY  AMY COLES

KICKSTART SCHEME

THOUSANDS of job hunters applying for the government’s flagship scheme to help young workers have been left in limbo as employers are told to pull ads.

In July Chancellor Rishi Sunak announced the £2billion Kickstart scheme, aimed at getting hundreds of thousands of unemployed 16-24-year-olds into work.

Under the scheme the government will subsidise the wage costs for young people claiming Universal Credit who are hired by employers for six-month work placements.

Employers should have been able to apply for the scheme this month but now some have been told to stop advertising jobs until a start date is confirmed.

Some recruitment sites say they have removed adverts and slam the government for not giving employers a date for when they can apply, reports This is Money.

Charlie Johnson, CEO of graduate recruitment firm Brighter Box, told the Sun they’ve been inundated with requests from job applicants.

He said: “We wrote a quick overview of what we knew about the scheme for our website and were subsequently inundated with loads of requests for further information.

“I’ve spoken with several employers who are hoping to take advantage of the scheme – some of whom are looking to hire tens of sales people on a 25 hour per week basis (i.e. the amount that the government will be funding these positions).  

“But we haven’t run with any of the twenty or so requests we’ve had so far to advertise roles as companies are awaiting further news”

Kickstart was announced as part of an emergency package to try and limit the unemployment caused by the Covid-19 pandemic.

The Resolution Foundation has forecast the scheme will help find jobs for around 350,000 youngsters in that age group.

A DWP spokesperson said:

“It’s fantastic that so many employers, like Tesco, already want to sign up to our £2 billion Kickstart scheme, and we’ll be publishing further details on how they can shortly.

“Until then, we urge employers to be patient and to not start advertising roles they want to be covered by the scheme just yet – there’s no cap on Kickstart places available, so no-one will miss out.”

Dire forecasts from experts have predicted more than a million youngsters will be out of work this year.

Think-tank the Institute for Public Policy Research said 410,000 18 to 24-year-olds were already jobless.

And it forecast 620,000 more would be out of work in the next six months.

Meanwhile, unemployment as a whole could treble to reach three million, the Office for Budget Responsibility (OBR) has predicted.

The predicted 1.03million total would be the highest since comparable records began in 1992.

The scheme will cover 100 per cent of the minimum wage for a maximum of 25 hours a week — with firms able to top up wages.

For example, young people between 21 and 24 years old on minimum wage currently earn £8.20 an hour, working out as £205 for 25 hours.

It comes as the Organisation for Economic Co-operation and Development has warned that the unemployment rate could reach 15 per cent if a second virus wave hits.

Roughly 9.3million workers in the UK have been furloughed due to the pandemic.