On 2 September 2020, the government’s £2 billion Kickstart Scheme opened for employer applications.
The scheme is part of the Plan for Jobs announced during Chancellor Rishi Sunak’s July Summer Economic Update.
The Kickstart Scheme aims to create work placements for young people who are at risk of becoming unemployed for the long-term. Businesses can join the scheme, with the government paying employers £1,500 to help set up support and training. Funding is available following a successful application process. Applications must be for a minimum of 30 job placements.
Businesses that are unable to offer this many job placements can partner with other organisations to reach the minimum number.
Selected out-of-work young people will be offered six month work placements for at least 25 hours a week to help them gain experience, skills and confidence. The scheme is designed to be a stepping stone to further employment.
Employers will receive funding for 100% of the relevant National Minimum Wage (NMW) for 25 hours a week, plus associated employer national insurance contributions (NICs) and employer minimum auto-enrolment pension contributions.
Chancellor 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.’