Kickstart Scheme

What is the Kickstart Scheme?

Although first announced in July 2020 and theoretically launched in October 2020, The Kickstart Scheme seems to remain one of the Government’s best kept secrets.  Which is truly strange as it’s an excellent initiative.  It’s primary objective is to provide 6 month work placements for young people who, as a result of the pandemic, are struggling to find work.  But by default this means it provides businesses with 6 months of FREE resource. 

How does it work?

Businesses receive 100% of the young person’s salary, at National Minimum Wage, 25 hours a week for 26 weeks, that’s 600 hours of FREE resource.  The Government also covers associated Employer National Insurance Contributions and Employer minimum automatic enrolment contributions.  And if that isn’t enough an additional grant of £1,500 per Kickstart placement is provided to help with setup costs (equipment, PPE, uniforms), support, and training.

So why support 18-24 year olds when unemployment is rising across all age groups?

This is the age group at greatest risk of long term unemployment, impacting on their life long earning capacity, reducing future possibilities such as homeownership and ultimately their ability to contribute, via personal tax, to paying off the huge national debt we’ve incurred throughout the pandemic.  The scheme gives young, unemployed people work experience that they get paid for, unpaid internships are great experience but only work for those who can afford it, this levels out the playing field.

I’d heard it’s a waste of time trying to get involved!

The scheme has had a lot of negative publicity as being slow and bureaucratic – both fair criticisms.  However, progress is now being made as the DWP have recruited (perhaps they took on Kickstarters) for both their Central office where applications from businesses are screened and the local Job Centres who support potential Kickstarters.  And, to make life easier, you can use a Gateway Organisation to do the paperwork for you.

Then I heard you had to take on at least 30 people

True at the beginning of the scheme, but not any longer, anyone can apply directly to the DWP even if they can only take on one person.  To be honest the rules around who’s eligible and how the scheme works are changing all the time.  If in doubt call me on 07809 909839 and I’ll share what I know about the latest version of events.

I’m still not convinced

Here’s five good reasons for getting involved in the Kickstart scheme:

1.The 12 month period from March 2020 to February 2021 saw the number of 18-24 year olds claiming unemployment related benefits increase by 124% *

2. 491,000 young people aged 18-24 were unemployed in November 2020-January 2021 *

3. It helps you, as a business, try out roles on your recruitment ‘wish list’ that you can’t currently afford.  100 hours per month, for 6 months, fully funded by the Government, what’s not to like about that?

4. It helps local economies – businesses employ youngsters, who in turn go out and spend their hard earned cash, probably in pubs and clubs!

5. Businesses grow because they’ve had 600 hours of extra, free, staff resource.  And because people are spending with them again.  Everyone wins

* Taken from a Parliamentary briefing paper on Youth Unemployment published 23 March 2021 https://commonslibrary.parliament.uk/research-briefings/sn05871/

OK, you’ve convinced me, what can I do to help?

Do at least one of two things:

1.Take on a Kickstarter, you can apply direct to the DWP or you can ask us to do it for you.  We’ve got the paperwork pretty much nailed now – unless of course they change the system – so you might find it easier to use a Gateway Organisation like ours.

2. PLEASE spread the word around your network.  Lots of 18-24 year olds still don’t know about the scheme or don’t know how to get involved.  In brief, if they’re 18-24, claiming, or eligible to claim, Universal Credit, they can get access to some of the fabulous placements businesses are offering.  There’s more info here about how to check eligibility https://www.gov.uk/universal-credit/eligibility.

Sandra Murphy and Steve Jebson are part of the Business Doctors network, both based in Sussex.  They decided to get involved with the Kickstart scheme for three reasons:

1. Both have young people in their networks who, because of the pandemic, are struggling to find suitable employment opportunities

2. It enables them to support their clients – local businesses who are looking to grow and need extra resources

3. Growing businesses and employed young people can only be good for the local economy

Sandra is based in Brighton and can be contacted on 07809 909839 or sandra.murphy@businessdoctors.co.uk

Steve is based in Crawley and can be contacted on 07889 269573 or steve.jebson@businessdoctors.co.uk