Government urges firms to hire under-25s through free ‘kickstart’ scheme
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UK companies can offer six-month work placements to young people – with wages paid entirely by the government – under the “kickstart” scheme launched today.
The government urged businesses to sign up and “take advantage of the enormous pool of potential out there”. It warned that young people “could otherwise be left behind as a result of the pandemic”.
Unveiled in chancellor Rishi Sunak’s July economic statement, the scheme will let employers offer young people aged 16-24 who are claiming universal credit benefits a six-month work placement.
The government will fully fund the “kickstart” jobs and has put aside £2bn to cover the scheme. It will pay 100 per cent of the national minimum wage, national insurance and pension contributions for 25 hours a week. Companies can extend the hours of top up the pay if they choose.
On top of this, the government will pay employers £1,500 to support and train those on a kickstart placement. It will also pay for uniforms and “other set-up costs”.
Employers will be able to join the scheme from today. The first roles are expected to begin at the start of November.
Sunak said the scheme is “an opportunity to kickstart the careers of thousands of young people who could otherwise be left behind as a result of the pandemic”.
Therese Coffey, secretary for work and pensions, said: “We are urging businesses to get involved in this innovative scheme and take advantage of the enormous pool of potential out there.
“There is no limit on the number of opportunities we’ll open up through kickstart.
“Young people taking part will receive on-the-job training, skills development and mentoring.”
Small businesses call for more help
The Federation of Small Businesses (FSB) said it welcomed the scheme. But it warned more needed to be done to ensure firms could take on new starters.
FSB national chair Mike Cherry said: “If small businesses are unable to survive the crisis, then we will see uptake continue to remain sluggish and potentially drop off further.”
The group has repeatedly called for targeted support to boost businesses as the furlough scheme is wound down. It has suggested an increase in loans and more help for the self-employed.
The government said there is no cap on the number of places on the kickstart scheme. It said there are around half a million people aged 24 and under on universal credit benefits.
Initially open until December 2021, the scheme has the option of being extended.