The Government’s £2bn Kickstart Scheme is aimed at creating hundreds of thousands of new, fully-subsidised jobs for young people across the country – and local businesses are being urged to sign up and reap the rewards.
Businesses keen to get involved and offer placements on the scheme are now able to bid for funding which will see the Government pay 100% of the age-relevant National Minimum Wage, National Insurance and pension contributions for 25 hours a week.
Minister for Employment Mims Davies MP said:
“Small and medium sized businesses once again thriving, is key to our economic recovery which is why I’m encouraging every single one to consider getting involved in our Kickstart Scheme as part of their next stage.
“We want to create as many opportunities for young people as possible and with representative bodies supporting SMEs to submit bids, they will be guided through the process so they can start recruiting Kickstarters.
“This innovative scheme is mutually beneficial for local employers, who get new access to an enormous pool of potential, and the young recruits will gain vital experience, confidence and a crucial boost to their career credentials.”
British Chambers of Commerce Head of People Policy Jane Gratton said:
“The Kickstart Scheme will help firms create and support thousands of opportunities for young people, maintaining their access to the job market and driving the UK’s economic recovery.
"Chambers of Commerce, rooted in local business communities, will be working hard to connect up employers and young people, so that every opportunity to use the Kickstart Scheme is taken.”
Businesses of all sizes are encouraged to get involved – here’s a handy guide for small and medium sized businesses:
Who can apply?
Any business, regardless of size, can apply for funding and the Government is encouraging as many businesses as possible to submit bids.
How many people can I take on?
There is no limit to the number of Kickstart places a business can offer through the scheme, and you can create just one Kickstart role if that’s what works for your business.
However all Kickstart roles must be new, quality and cannot be used to fill existing or planned vacancies.
What are the costs to the business?
Companies that are successful in securing funding will receive 100% of the relevant National Minimum Wage for 25 hours a week, plus associated employer National Insurance contributions and employer minimum automatic enrolment contributions.
£1500 per person will be available to cover employment support as well as additional costs such as uniform expenses, setting up training and any admin fees.
How do I apply?
If you are recruiting more than 30 people as part of the Kickstart Scheme you can submit a bid directly online through: https://www.gov.uk/guidance/apply-for-a-grant-through-the-kickstart-scheme
If you are looking to recruit fewer than 30 people you apply through an intermediary.
Intermediaries can be other businesses, local authorities, trade bodies, Chambers of Commerce and charities.
You can find an intermediary in your area by speaking to your local jobcentre, or by looking online: https://www.gov.uk/government/publications/kickstart-scheme-employer-contacts/kickstart-scheme-employer-contact
Once you’ve provided your company name, contact details and location the DWP employer team will get in touch within 48 hours to connect you with your local representative.
Can I become an intermediary for my area?
Yes, businesses recruiting for fewer than 30 places are free to create their own consortia and you can find more guidance on how you can become a representative organisation online:
All intermediaries must have experience of managing partnership agreements with third parties and robust financial and governance processes to manage the application.
Organisations acting as intermediaries for employers will be paid £300 for each placement.
Why has it been designed this way?
The bid process has been designed to be as efficient as possible so businesses can start interviewing quickly and young people can begin their placements.
Businesses applying through a registered intermediary will be given help and guidance with their representative managing the bidding process on their behalf – making it less labour intensive for SMEs.
Once successful, how do businesses recruit?
Young people will be enrolled on the Kickstart scheme by their jobcentre Work Coach, and then matched up with vacancies that are suitable for them. Kickstart applicants will then go through the company’s normal interview process.