The Kickstart Scheme

The Kickstart Scheme provides funding to employers to create new 6-month job placements for young people (age 16-24) who are currently on Universal Credit and at risk of long-term unemployment. It's a great way to not only help a young person into or back into employment it can also be great for your business. Here is everything you need to know if you're thinking of applying.

The funding for each job placement will cover:

100% of the relevant National Minimum Wage for 25 hours a week.
The associated employer National Insurance contributions.
Employer minimum automatic enrolment contributions for pensions.

Who can make the Kickstart application (KSA)?

Any organisation regardless of size in England, Scotland and Wales but not in Northern Ireland can make an application. If you have more than 30 job placements available you can make the application yourself through the Government Portal. If you have less than 30 placements you will need a nominated representative (NR) who will, in turn, need 30 placements before they can make an application for the group.

Who is the nominated representative (NR)?

It could be a group of employers coming together and nominating one of them to process through The Kickstart Scheme. Existing approved NRs are local authorities, chambers of commerce or trade bodies. You can also contact your local JobCentre Plus to obtain details of your local NR.

What are the Kickstart criteria?

The jobs must be new positions and must not be replacing existing or planned vacancies.
It must not cause existing employees or contractors to lose or reduce their employment.
Jobs must be for a minimum of 25 hours per week for a 6 month period.
The National Minimum Wage for that age group is paid.
People should not be required to undertake extensive training before they begin their job placement.

How does the Kickstart funding work?

There is an initial grant of £1500 per job placement to cover set up costs, support and training. The setup cost will be paid once the young person has commenced work and is enrolled on the payroll and is being paid through PAYE. The DWP will liaise with HMRC to check that the young person is still employed and will pay grants in arrears. Employers will receive funding of up to 100% of the National Minimum Wage including National Insurance costs and pension scheme contributions from the Government for each employee (aged 16-24), covering a maximum of 25 hours a week.

What information is required for the KSA?

Each application should include how you will help the participants to develop their skills and experience, including:

Support to look for long-term work, including career advice and setting goals
Support with CV and interview preparations
Supporting the participant with basic skills, such as attendance, timekeeping and teamwork

You will also need to provide:

Companies House reference number or Charity Commission number.
Your organisation’s address and contact details.
Details of the job placement and the location.
A full job description.
Information on how the candidate can apply for that job placement.

Once a job placement is created, it can be taken up by a second person once the first successful applicant has completed their 6-month term.

What happens after the KSA is submitted?

The application will be initially reviewed and then sent across to a Panel for further consideration. You may be contacted to provide further information in support of your application.

If successful you will receive a letter with a grant agreement. This will detail what you are offering and how much funding you will receive. You must then sign and return the agreement before the job placement can begin. You will be then contacted by those young people who match the criteria stated in the job description and you will have the choice whether to employ them or not. You will only obtain funding if you appoint a young person that is on the scheme.

If your application is unsuccessful

If your application does not meet the requirements of the scheme, you will receive an explanation as to why and be given feedback. You can then submit a new application with further information. There is no limit to the number of times you can apply for funding, however, there is no legal right of appeal.

Important to note

DWP may contact the young person or the employer to check that the criteria to receive the funding is still being met.
A business can pay in excess of the minimum wage and offer more hours of work but that will not be covered by the Scheme.
Kickstart is not an apprenticeship but participants may move on to an apprenticeship during the 6 month period or following it.
Once the 6 month period is over you can run the job placement again.

For more information visit https://www.gov.uk/government/...

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