UK Government launches landmark Kickstart Scheme
Tuesday, 08 September 2020
Over the past few days we’ve seen some long awaited details of the government’s Kickstart Scheme. This eagerly anticipated scheme is aimed at creating hundreds of thousands of new, fully subsidised, jobs for young people across the country.
It’s goal is to allow employers of any size to offer young people aged 16-24, who are claiming Universal Credit, a six-month work placement. The government will fund fully each work placement by paying 100% of the age-relevant National Minimum Wage plus associated employers NIC and employers minimum automatic enrolment contributions for 25 hours a week.
Employers must offer a new role which cannot replace existing or planned vacancies or cause a change in an existing employee’s role.
The employer will also have to show, as part of the funding application process, how the role will help the young person to develop their skills and experience and support them towards long-term work.
Once accepted onto the scheme, the government will also pay employers £1,500 per job placement to support employers with set up and training costs.
The Kickstart Scheme is not an apprenticeship, but participants may move on to an apprenticeship at any time during, or after their job placement.
Whilst badged as available to all employers, many smaller businesses will be disappointed by the fact that, unlike Tesco’s, who’ve already signalled an interest, if they can’t offer at least 30 job placements, they ‘ll only be able to access the scheme through an intermediary who is registered for the purpose. This sounds like an additional administrative hurdle for smaller employers, which is shame given that they account for 60% of employment and around 50% of turnover in in the UK private sector.
For more details on the Kickstart Scheme click here
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