The Kickstart Scheme is a government initiative designed to help young people find jobs while supporting businesses in need of fresh talent. Launched in response to rising unemployment, especially among younger individuals, the scheme provides funding to employers to create new job placements for 16- to 24-year-olds on Universal Credit.
Not only does this initiative give young jobseekers valuable work experience, but it also allows businesses to grow with minimal cost, making it a win-win for everyone involved.
What is Kickstart Scheme?
Under the Kickstart program, the Government hopes to create roles for as many as 250,000 young people who are currently receiving Universal Credit (UC).
Initially announced in the July Economic statement, the details of the scheme have now been published and the first placements should be available from November.
Kickstart allows employers to receive funding for six-month work placements for 16 to 24-year-olds currently receiving UC, who are seen to be among the most vulnerable to unemployment.
Funding applications must be for new jobs – with the funding conditional on the firm proving they are adding jobs. This means that they cannot replace existing or planned vacancies, and they must not cause existing employees or contractors to lose or reduce their employment.
Under the scheme, the Government will pay 100% of the relevant National Minimum Wage (NMW) for 25 hours a week. Rates for 16 to 24-year-olds are currently as follows:
- Age under 18 – £6.40 per hour
- Age 18 to 20 – £8.60 per hour
- Age 21 to 24 £11.44 per hour
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Under the scheme, the Government will also pay the associated employer National Insurance Contributions (NICs) and employer minimum automatic enrolment pension contributions, where applicable.
How it Works?
There is also £1,500 per job placement available for setup costs, uniforms, support, and training, Employers will, however, need to show in their application how they intend to help the participants to develop their skills and experience, including:
- Support to look for long-term work, including career advice and setting goals;
- Support with CV and interview preparations; and
- Supporting the participant with basic skills, such as attendance, timekeeping, and teamwork;
Once a job placement is created, it can be taken up by a second person once the first successful applicant has completed their six-month term.
According to the Department for Work and Pensions (DWP), there will also be extra funding to support young people to build their experience and help them move into sustained employment after they have completed their Kickstart scheme-funded job.
Launching of this Scheme
The scheme initially attracted some criticism because employers taking on fewer than 30 new young workers were prevented from applying directly for funds.
However, it has now been confirmed that employers who are unable to meet the placement numbers condition can partner with other organisations to reach the minimum number requirement.
Moreover, the representative applying on behalf of the group can claim additional funding of £300 per job placement to support the associated administrative costs of bringing together the employers.
Smaller businesses may also be able to apply through an intermediary, such as a Local Authority or Chamber of Commerce, which will then bid for 30 or more placements as a combined bid from several businesses.
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This will make the process easier and less labor-intensive to apply for these smaller companies can only consider hiring one or two Kickstarters.
The scheme, which will be delivered by the DWP, will initially be open until December 2021, with the option of being extended.
Funding applications can be made online and further information can be found at Apply for a grant through the Kickstart Scheme.
Quick Sum Up
In conclusion, the Kickstart Scheme has proven to be a valuable opportunity for young people looking to gain practical work experience and for businesses aiming to support the next generation of talent.
By covering essential costs and creating funded job placements, the scheme helps both employers and young job seekers. For businesses, it’s a great way to bring in fresh ideas and skills while giving back to the community.
For young people, it’s a stepping stone into a meaningful career. As the Kickstart Scheme continues to grow, it offers a win-win for everyone involved.
Disclaimer: All the information provided in this article on Kickstart Employers Need for Employer Retention Scheme, including all the texts and graphics, is general in nature. It does not intend to disregard any of the professional advice.
