THE KICKSTART SCHEME – what is it and why should it matter to me and my business?

What is the Kickstart Scheme, in short, the scheme offers 16 to 24-year-olds currently on Universal Credit and at risk of long-term unemployment a six-month paid placement for 25 hours a week.

Our young people are now entering the toughest employment market since the 1980s and this scheme offers them the opportunity to swim rather than sink.

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.

As a small business owner, myself I have applied for the scheme for two reasons:

One I have two teenage sons and I want to do something purposeful and meaningful to help their generation secure a better future.  Many young people have no work experience to speak of to put on their CV’s which hampers their employability greatly.

Also, they have had much of their education disrupted with the pandemic resulting in mental health deterioration and lack of confidence, suicide rates are through the roof and mental health services for young people are at breaking point.  It’s heart-breaking the damage the pandemic is causing. As a parent, I feel strongly that our children should be supported and guided in any way possible.  They are after all our future.

Secondly, as a Small Business Owner, I feel morally obligated to give something back and be of value to my community, being in business should never in my opinion be just about making money, it should be about providing a service to others that is of value and of benefit to society in some way, whether that be by creating jobs, opportunities, charity work, a useful product or service.  It must be more than just about making a profit.

The Federation of Small Business recently  had this to say on the subject of our young people and the kickstart scheme:

The Federation of Small Businesses (FSB) has welcomed the new scheme but says more action is needed to help prevent a “lost generation of young people”, The Guardian reports.

“More must be done to ensure small firms have all the support they need to survive and then thrive after this pandemic,” said FSB chair Mike Cherry.

“If more small businesses are unable to afford an apprentice, without the means to offer an industry placement for T-level pupils or provide a traineeship or Kickstart role, we will be letting down the next generation.”

With all this in mind, the Kickstart Scheme is a real opportunity for us Small Business Owners to help a young person get some much-needed training, experience, and maybe even gainful employment at the end of the scheme, and the beauty of this scheme is that it does not cost you a penny.  All that is required is your desire to want to help our young people and be eligible.

What is the Kickstart Scheme and how does it work?

The Kickstart Scheme is open to young people aged between 16 and 24 who are claiming Universal Credit and at risk of long-term unemployment.

Key Points:

  • Six-month placement will be available across a range of different sectors in England, Scotland, and Wales
  • The role you offer must be new jobs. The role cannot replace existing or planned vacancies.
  • The placement must not cause existing employees, apprentices, or contractors to lose work or reduce their working hours.
  • Employers will receive funding to pay the national minimum wage for 25 hours a week, plus associated employer National Insurance contributions and employer minimum auto-enrolment pension contributions.
  • Employers will also be provided with £1500 to help set up support and training.
  • As an employer, you can top up wages or extend their working hours if you wish
  • The scheme is due to run until December 2021.

So, what does the placement need to involve?

You can employ for any role, but you do have to be fully committed to supporting the young person in getting basic work skills including:

  1. Looking for long-term work including career advice and setting goals
  2. Support with a CV and interview preparations
  3. Developing their skills in the workplace, including:
  • Attendance and timekeeping
  • Teamworking
  • Communication
  • Travelling to work/working from home

What will you get?

You will receive £1500 funding per job offered.  This is to be spent on setup costs and supporting the young person to develop their employability skills.

For example:

  • training and employability support (provided by you, a Kickstart gateway, or another provider)
  • IT equipment and software
  • uniform or Personal Protective Equipment

The funding covers:

Employers can pay a higher wage and for more hours, but the funding will not cover this.

What you need to provide

You will need:

  • your Companies House reference number, Charity Commission number or Office of the Scottish Charity Regulator number, if you have one
  • your organisation address and contact details
  • details of the jobs and their location

DWP performs due diligence checks on all employers and Kickstart gateways using the Cabinet Office Spotlight tool.

How do I apply?

You can apply directly yourself if you are a limited company on line or alternatively you can apply through a  kickstart gateway if you prefer or if you are a  sole trader.

Once the application has been submitted the decision is  usually made within a month of the application.

The jobs do not exist until the application has been approved and you have signed the grant agreement with DWP or Kickstart gateway.

Can you add more jobs to the scheme?

Yes, you can add more jobs to your grant agreement after it has been approved and you do not need to apply again

If you applied through a Kickstart gateway, tell them you’d like to add more jobs to the grant agreement. They will contact DWP to arrange this. If you applied directly, get in touch with your local or national Kickstart Scheme contact for information about how to add more jobs to your grant agreement.

What happens when the six-month placement is over?

The placement will end. You can then choose to make an offer of employment. You are not obliged to offer employment at the end of the placement.  If you are not able to offer the young person a job at the end of the scheme and there is no work available for them elsewhere, they will return to universal credit.  Hopefully, this won’t be the case but at the very least you will be releasing them knowing you have helped them enormously in gaining useful work skills which can support them in obtaining future employment.  You will have contributed massively to helping them have hope of a better future.  That feeling is priceless!

Conclusion

There you have it, a short guide on what the kickstart scheme is and why it matters.

At the end of the day, we have all been through such a difficult time with the pandemic and we have all done our bit to get us through.

If we are not careful this pandemic is going to leave a generation lost with very deep scars. We as small business owners have an opportunity to fight back in a positive way against the damage the pandemic has done already by providing invaluable training and support of young people, our children in fact.

We asked our future generation to effectively give up a year of their lives for the greater good and they did that.  Now its time for us to give them a big thank you and help them get back on their feet.

Do something good today and make your application!

Lizie Lacy

Director
Admin Made Easy Ltd