On 2 September, the government officially launched the Kickstart Scheme to help boost recovery of the UK’s economy in the wake of COVID-19.
The scheme aims to create hundreds of thousands of new, subsidised jobs for applicants aged between 16 and 24 who are currently on Universal Credit or ‘deemed to be at risk of long-term unemployment’.
Latest government figures show a disproportionate number of young people have been hit by the pandemic, with 538,000 under-25s claiming Universal Credit during lockdown, a record high.
The Chancellor described the scheme as, ‘an opportunity to kickstart the careers of thousands of young people who could otherwise be left behind as a result of the pandemic’.
Employers who opt to participate in the scheme will receive government funding covering 100% of minimum employer contributions as well as relevant national minimum wage and employer NI contributions for 25 hours per week for each eligible employee during a six-month placement.
Employers will be able to top up wages if they want to, but this will be from their own funds. Employers may also be able to claim up to £1,500 per Kickstart placement to support training, uniform, set up costs and equipment.
Whilst larger firms will be able to access funding directly online, smaller businesses will need to meet some requirements before funding can be assessed. Employers with fewer than 30 employees will need to pool together with other SMEs to create a batch of 30 roles.
This offers an opportunity for smaller businesses to partner together and create new ecosystems of employment for young people across a variety of industries.
Applications for the scheme opened to employers on 2 September 2020.
Follow the following link to check whether you can apply for a grant through the Kickstart Scheme: Check if you can apply for a grant through the Kickstart Scheme