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    Business Growth September 5, 2020

    The Kickstart Scheme for employers

    The government's Kickstart Scheme provides funding to create new jobs for young people. Is your business eligible to participate?

    The Kickstart Scheme is a £2 billion government initiative designed to create hundreds of thousands of high-quality, six-month work placements for young people aged 16 to 24 who are claiming Universal Credit and are at risk of long-term unemployment.

    For employers, the scheme offers a fully funded way to bring new talent into the business while contributing to the economic recovery. The government covers 100% of the National Minimum Wage (or National Living Wage) for 25 hours a week, plus the associated employer National Insurance contributions and minimum automatic enrolment pension contributions.

    Creating a qualifying job

    The jobs created through the Kickstart Scheme must be new jobs. They must not replace existing or planned vacancies, nor cause existing employees or contractors to lose or reduce their employment. The roles must provide a minimum of 25 hours per week for six months and pay at least the National Minimum Wage for the participant's age group. Employers can choose to top up the wage or offer more hours at their own expense.

    Employability support

    A key requirement of the scheme is that employers must provide employability support to the young people they hire. This includes helping them to develop basic skills (such as attendance, timekeeping, and teamwork), supporting them with CV writing and interview preparation, and helping them look for long-term work. To help cover the costs of setup and providing this support, the government provides employers with a £1,500 grant per job placement.

    How to apply

    Initially, employers creating fewer than 30 placements had to apply through an approved 'gateway' organisation. However, the process has been simplified, and employers of all sizes can now apply directly to the Department for Work and Pensions (DWP) online. The scheme is a valuable opportunity for businesses to expand their workforce risk-free while providing crucial experience to the next generation of workers.

    Disclaimer

    The information contained in this article is for general guidance on matters of interest only. It should not be used as a substitute for consultation with professional accounting, tax, legal, or other competent advisers. Before making any decision or taking any action, you should consult a Kingscott Dix professional.