On Wednesday 2nd September the Government announced the launch of their new £2 billion Kickstart Scheme, which is designed to create thousands of new jobs for young people.
The Scheme is open to employers who agree to take on young people aged between 16 and 24 and who are currently in receipt of Universal Credit.
They will be offered six-month work placements, with their wages being paid by the Government.
The Government will fully fund each ‘Kickstart’ job, paying 100% of the age-relevant National Minimum Wage, National Insurance and pension contributions for a minimum of 25 hours a week.
Employers will be able to top up this wage, whilst the Government will also pay employers £1500 to set up support and training for each person on a Kickstart placement, as well as helping pay for uniforms, workwear, essential items and other set up costs.
The jobs will give young people – who are more likely to have been furloughed or been made redundant – with many working in sectors disproportionately hit by the pandemic – the opportunity to build their skills in the workplace and to gain experience to improve their chances of finding long-term employment.
Businesses of all sizes that are looking to create quality jobs for young people can apply and there is no cap on the number of places.
Young people will be transitioned in to the new roles through their Jobcentre Plus work coach, with the first Kickstart employments expected to begin at the beginning of November.
The Scheme, which will be delivered by the Department for Work and Pensions, will initially be open until December 2021 but the Government have indicated that they will keep the Scheme under review and will look favourably on an extension beyond December 2021 as the Scheme unfolds.
Around 700,000 young people are set to leave education and enter the job market this year, with a quarter of a million more people aged under 25 claiming unemployment benefits since March – with youth unemployment having a long-term impact on jobs and wages.
The Kickstart scheme was announced as part of the Chancellor’s Plan for Jobs, which set out the biggest package of support for youth unemployment in decades – including tripling the number of traineeships, incentivising employers to hire more apprentices through a £2,000 payment to employers for every apprentice they hire under the age of 25 and investing in our National Careers Service so people can receive bespoke advice on training and work.
Employers can find more information about the Kickstart Scheme via this link: