To help create new jobs for young people, the government has launched a new 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. Since the scheme was launched in September 2020, 120,000 jobs have been so far created.

 

The Government will pay for each Kickstart placement, up to 100 per cent of the age-relevant National Minimum Wage and the National Insurance and pension contributions for 25 hours a week. Employers could top up the wage if they chose.

Any organisation can apply for the funding, no matter the size, but the jobs must be new roles. The scheme cannot be used to pay for existing vacancies.

Employers will also receive £1500 per placement to support the young person in their role and help them build skills and experience.  You can check to see if your roles are eligible for the scheme here.

 

How the scheme works

The Kickstart Scheme provides funding to create new job placements for 16 to 24 year olds on Universal Credit who are at risk of long term unemployment. Employers of all sizes can apply for funding which covers:

Employers can spread the start date of the job placements up until the end of December 2021.

From 3 February 2021, employers can apply directly to the Kickstart scheme for any number of job placements. The government are removing the threshold of 30 job placements. You can also choose to apply through a Kickstart gateway, including those supporting sole traders. Read more here.

Kickstart gateways already working with the scheme can continue to add more employers and job placements to their grant agreement.

 

What happens next?

Once your application has been accepted it will be sent to your local Job Centre Plus who will arrange the posting of the vacancies and advise you on applications to the role.

You will then interview any suitable candidates. Once the vacancy is filled your intermediary will draw down the government funding and pay you directly.

 

 

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