The kickstart scheme provides funding to employers and creates new 6 month job placements for young people aged 16-24 who are currently on Universal Credit and at risk of long term unemployment.
The first placements are likely to be available as soon as November 2020. For each job placement, the government will pay for 25 hours a week at the National Minimum Wage as well as other associated employer’s costs such as National Insurance and minimum automatic enrolment contributions.
This is an excellent opportunity to develop your workforce whilst also helping to reduce the unemployment rate and offer opportunities to young people.
If your business is interested in the programme we are a gateway provider for the Kickstart scheme, so please register your interest by contacting us here or call us on 0121 777 5361 for more information on how this could benefit your business.
Kickstart Launch FAQS
What’s the purpose of the Kickstart scheme?
Due to the coronavirus outbreak, young people have lost out on job opportunities or have lost their job entirely. This scheme aims to help them get back to work and help build up skills needed for the future.
The scheme will create 6-month job placements, not an apprenticeship! The scheme aims to support participants in gaining the experience they need to find work after completing the scheme.
‘Government figures now show that a record 538,000 under-25s claimed Universal Credits in lockdown’.
Who is the scheme aimed at?
Young people aged 16-24 who are unemployed and on benefits or universal credit (thus at risk of long-term unemployment) will be applying for the scheme through their assigned job centre or local authorities.
Is the scheme just for small to medium sized organisations?
No- all organisations, regardless of size, can bid for funding. Companies such as Tesco will be creating over 30 new placements. But this does not necessarily mean you will need to compete! It all depends on the job placement opportunity you can offer and how many you can offer. However, if it is less than 30 you will need a gateway provider, or you could pool together with another organisation who are maybe in the same sector as you.
Can employers pay more than the national minimum wages and NIC contributions?
Yes you can top up wages if you feel you can do so but this will be out of your own funds, the government will be able to only provide a grant for employers of up to £1,500 to help towards training and setup uniform etc. per each kickstart placement, which will be funded directly to you.
The kickstart scheme seems too complicated?
Due to the delay in the scheme, the process of creating 30 roles has seemed daunting to most SMEs but the process to attain one participant through a gateway provider is not complicated at all. Once you have established a new role, simply reach out to a gateway provider who can then provide a placement. This is a new process for everyone, but in the long term will benefit both the employer and participant whilst reducing the unemployment rate. Integrity Accountancy Services is an acting gateway provider and are focused on helping SMEs to access funding or advise in any way possible!
Can you advertise your role for the scheme?
The DWP have advised employers to be patient and not to advertise any roles. All roles will be handled through Jobcentre Plus, which is where all young people will be applying through. The Government guidance suggests it will take a minimum of 4 weeks to process, however this is the soonest date- and it is best to plan for feedback or approval within 6-8 weeks.
How much will I be paying for wages? And How?
For each participant, the government will cover the cost of 25 hours of work a week at the National Minimum wage. From April 2020 this is at:
– £4.55 for under 18s
– £6.45 for 18-20-year-olds
– £8.20 for 21-24-year-olds
The Government will also be covering National Insurance Contributions and Pension Enrolment.
Once you have enrolled your appointed young person to their role, their start date will be identified on your PAYE systems triggering a retrospective payment of the outlined costs above at 3 months and again at 6 months.
How long will applications be open for?
the scheme will remain open for new kick-starters to start their placement up until December 2021.