As the furlough scheme comes to an end, the Government is putting in place some measures to try to stave off the anticipated wave of redundancies and increase in unemployment. The £2 billion Kickstart Scheme, which began on 1 September 2020, is intended to combat youth unemployment. Under the scheme, employers can get financial support in order to offer 6 month work placements for young people aged 16 - 24 who are currently claiming Universal Credit.
In more detail...
Eligibility: Any employer is potentially eligible for the scheme - it is not limited to particular sectors.
In order to participate, employers must apply for funding for a minimum of 30 work placements. Employers who are not able to offer 30 placements can join a group of employers in order to offer 30 placements as a group. The group must nominate a representative employer which has experience of managing partnership agreements with third parties and robust financial and governance arrangements.
Placements: The purpose of the placement is to assist the young person in gaining the skills and experience they need to find work (although there is no requirement for formal training as in an apprenticeship). The individual should not need to undertake significant training before taking up the placement.
The work placements created with Kickstart funding must be new jobs. They must not replace existing or anticipated vacancies or result in other staff losing their jobs.
The work must be for a minimum of 25 hours per week, for 6 months and paid at least the applicable National Minimum Wage.
Employers applying for funding will need to show how the placement will develop the young person's skills and assist them in finding long-term work (e.g. interview technique, CV feedback).
Funding: Funding under the scheme covers 100% of the applicable National Minimum Wage for 25 hours a week, plus employer NI and auto-enrolment pension contributions for those hours. There is also £1,500 per placement available for setup costs, support and training. This funding applies for the 6 month period of each placement, but any wage and other costs after that date will be borne solely by the employer.
Practical tips: Young people hired under the scheme will need a written contract setting out all key terms of their employment for the purposes of the placement. It should set out clearly what's expected in terms of hours and duties and, crucially, what will happen at the end of the 6 months.
Employers interested in the scheme should refer to the Government's guidance here for more information.
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