Government Kickstart Jobs Scheme

• September 03, 2020
• Author: Clear Bridge HR

 

Wondering what the Government's new Kickstart Jobs Scheme involves and how it could benefit your company?

We think the new Government Kickstart Scheme is fantastic, which is why we have now become Kickstart Representatives. Working alongside Clear Bridge HR, we have created a useful guide breaking down what the Scheme involves, how it can add value to your company and who is eligible…

In total, as of May there were almost 500,000 young people aged 24 and under claiming Universal Credit - double the figure just a few months ago, and these young people are at risk of long-term unemployment.

The Kickstart Job-Creation Scheme provides the younger generation with a chance to build their career and gain valuable experience despite the current pandemic, whilst giving you the opportunity to increase your workforce with no, or very little cost.

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What is the Government Kickstart Jobs Scheme?

 

The Government has just launched a new £2 billion Kickstart Scheme, to create hundreds of thousands of new, fully subsidised jobs for young people across the country.

This comes as Prime Minister, Boris Johnson, put tackling youth unemployment at the top of the government’s recovery plan which follows direct forecasts from experts predicting more than a million youngsters will be out of work this year.

The £2 billion funded program benefits young workers who are currently under the Universal Credit program, which is a government-funded initiative that helps low-income or unemployed workers by giving them monthly payments to cover their living costs.

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The benefits of joining the Government Kickstart Jobs Scheme

 

• Create new 6-month job placements for young people who are currently on Universal Credit and at risk of long-term unemployment, helping with their career development and future prospects.
• With funding available for 100% of the relevant National Minimum Wage for 25 hours a week, plus associated employer National Insurance contributions and employer minimum automatic enrollment contributions, you can add to your company's workforce with very limited costs.
• £1,500 per job placement available for setup costs, support and training.
• The opportunity to help the younger generation build their career in a time when there are fewer jobs out there and unemployment rates are high.

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Give A Grad A Go are Kickstart Representatives

 

To apply directly to the scheme, your organisation must be creating a minimum of 30 job placements. However, as Kickstart Representatives, we're bringing companies together to meet this placement criteria. So if your company would like to apply to the scheme, but you don't have 30 potentially job placements available, get in touch and join our Kickstart Network.

Once we have enough placements, we will then work to set up and manage the Kickstart Scheme on behalf of your company.

If we don't get enough interest, we won't go ahead with the application, but we're confident that the great benefits of this scheme will see many of our clients willing to apply to our Kickstart scheme in London.

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More about the Kickstart Scheme

 

Employers will be able to offer a six-month work placement for young people aged between 16 and 24 who are claiming Universal Credit and are at risk of long-term unemployment. To be eligible, employers are expected to offer contracts of a minimum of 25 hours per week.

Workers should be compensated for their hourly work at the National Minimum Wage. Specifications are as follows:

• £4.55 for those under 18 years of age
• £6.45 for 18-20 years old
• £8.20 for 21-24 years old

Employers can claim back the cost of the national minimum wage through the government's Kickstart Job Scheme, plus the associated employer National Insurance contributions and employer minimum automatic enrolment contributions.

Employers may opt to top these salaries up if they see fit. They are also responsible for providing training and support to Kickstart Scheme employees to help them secure permanent jobs at the end of the 6-month period.

If you need help training and supporting your Kickstart employees, and are still working remotely, be sure to check out Give A Grad A Go's virtual training tips for businesses.

 

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When does the Kickstart scheme start and end?

 

The Kickstart scheme officially launched on the 2nd of September, with employers able to submit and application once they have 30 or more placements in one application, or have submitted through a Kickstart partner.

The scheme will run until at least December 2021 and will span the entire UK.

 

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Which companies are eligible to join the Kickstart Scheme?

 

The good news is that any UK enterprise offering decent jobs may enter the program, provided that the jobs they are making available to applicants are new, are not replacing any already existing jobs and are ‘above and beyond any jobs they were expecting to create’.

There is no cap on place availability, so every kind of business is encouraged to join - big or small, national or local. It covers England, Scotland, and Wales, with Northern Ireland soon to follow, after additional funding is given.

However, the roles you are applying for must be:

• A minimum of 25 hours per week, for 6 months
• Paid at least the National Minimum Wage for their age group
• Should not require people to undertake extensive training before they begin the job placement

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How can I apply for the Kickstart Scheme?

 

Register your interest with us and, providing we have enough employers interested to make up the minimum of 30 placements, we will handle the application process.

The expectation is for workers to begin their new roles in the Autumn. The current plan is for the scheme to run until December 2021; however, it may be extended depending on the needs of the economy.

We believe the process will be managed through Jobcentre Plus. Work coaches (those tasked with supporting benefits claimants back into employment) will be asked to identify people who are most “at risk of long-term employment”, who will be invited to take part. 

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What other Government Funded Schemes are on offer to young people?

 

• Traineeships

Traineeships are unpaid work placements aimed at 16-24 year olds, designed to build employability skills and make the trainee 'apprenticeship-ready'.

They can last between six weeks and six months, and trainees are supported with English and maths, as well as more general skills such as CV writing, interview preparation, and workplace rights and responsibilities. The UK Government will now pay employers £1000 for every trainee they take on.

If you’re looking to boost your current employees' skillset, visit Give A Grad A Go’s blog for tips on how to bridge the digital skills gap in the workplace.

• Apprenticeships

Apprentices are aged 16 or over and combine working with studying to gain skills and knowledge in a specific job. Apprentices work a minimum of 30 hours per week and are paid a minimum of £4.15 per hour.

The UK government will pay employers extra incentives until January 2021:

• £2000 for every new apprentice aged 16-24
• £1500 for every new apprentice aged 25+

These incentives are in addition to the current employer incentives which pay employers £1000 for employing apprentices aged 16-18.

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• September 03, 2020
• Author: Clear Bridge HR