Kickstart Scheme

New £2 billion Kickstart scheme will create thousands of new jobs for young people

Published 2 September 2020 From: HM Treasury

• Youngsters on Universal Credit aged between 16-24 will be offered six-month work placements – with wages paid by the government
• Launch comes as companies like Tesco pledge to sign up
• Employers can find more information about the Kickstart scheme: gov.uk/kickstart

An innovative new scheme to help young people into work and spur Britain’s economic revival was launched by the government today.

Businesses are now able to sign up to be part of the landmark £2 billion Kickstart scheme, giving unemployed young people a future of opportunity and hope by creating high-quality, government-subsidised jobs across the UK.

Under the scheme, announced by Chancellor Rishi Sunak as part of his Plan for Jobs, employers can offer youngsters aged 16-24 who are claiming Universal Credit a six-month work placement.

The government will fully fund each “Kickstart” job – paying 100% of the age-relevant National Minimum Wage, National Insurance and pension contributions for 25 hours a week.

Employers will be able to top up this wage, while the government will also pay employers £1500 to set up support and training for people on a Kickstart placement, as well as helping pay for uniforms and other set up costs. The jobs will give young people – who are more likely to have been furloughed, with many working in sectors disproportionately hit by the pandemic – the opportunity to build their skills in the workplace and to gain experience to improve their chances of finding long-term work.

Chancellor Rishi Sunak said: “This isn’t just about kickstarting our country’s economy – it is an opportunity to kickstart the careers of thousands of young people who could otherwise be left behind as a result of the pandemic.

“The scheme will open the door to a brighter future for a new generation and ensure the UK bounces back stronger as a country.”

Businesses of all sizes looking to create quality jobs for young people can apply and there is no cap on the number of places. Household names including Tesco have already pledged to offer Kickstart jobs.

Young people will be referred into the new roles through their Jobcentre Plus work coach with the first Kickstarts expected to begin at the start of November.

The scheme, which will be delivered by the Department for Work and Pensions will initially be open until December 2021, with the option of being extended.

To help smaller businesses, employers offering fewer than 30 placements will be asked to make a bid through an intermediary, such as a Local Authority or Chamber of Commerce, who will then bid for 30 or more placements as a combined bid from several businesses. This will make the process easier and less labour intensive to apply for these smaller companies who only want to hire one or two Kickstarters.

The Kickstart scheme was announced in July as part of the Chancellor’s Plan for Jobs, which set out the biggest package of support for youth unemployment in decades – including tripling the number of traineeships, incentivising employers to hire more apprentices through a £2,000 payment to employers for every apprentice they hire under the age of 25 and investing in our National Careers Service so people can receive bespoke advice on training and work.

Northamptonshire Chamber of Commerce is proud to support the Kickstart Scheme in creating a wealth of new, fully subsidised jobs for young people across the county.

Your Chamber of Commerce will be collating business responses and acting as an intermediary if your organisation is creating fewer than 30 Kickstart job placements.

For more information and an expression of interest form please email: Christopher.jones@northants-chamber.co.uk


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