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Kickstart Scheme to be extended until March 2022

Melanie Richardson

26/10/2021

Chancellor Rishi Sunak used his speech at the Conservative Party Conference to announce the extension of the Kickstart Scheme, which allows businesses to provide government funded jobs to young people. The scheme is one of three jobs initiatives that Sunak said will be extended until next year. Kickstart, which funds jobs of six months for 16-24 year olds receiving Universal Credit, will continue until March 2022.

What is the Kickstart Scheme?

The Kickstart Scheme provides funding to create new jobs for 16 to 24 year olds on Universal Credit who are at risk of long term unemployment. Employers of all sizes can apply for funding until 17 December 2021 which covers:

100% of the National Minimum Wage (or the National Living Wage depending on the age of the participant) for 25 hours per week for a total of 6 months
associated employer National Insurance contributions
minimum automatic enrolment pension contributions

Employers can spread the job start dates up until 31 March 2022. You’ll get funding for 6 months once the young person has started their job.

Further funding is available to provide support so that young people on the scheme can get a job in the future.

What you’ll receive

You’ll receive £1,500 funding per job. This should 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

DWP may ask you for your records to show that you’ve spent the funding on setup costs and supporting the young person’s employability.

How can my business apply?

You can apply for a Kickstart Scheme grant by either:

applying online yourself
applying through a Kickstart gateway who is already working with the Kickstart Scheme

Applying online yourself

You will:

provide the Department for Work and Pensions (DWP) with information about the jobs you’d like to offer
have direct contact with DWP about your application
manage the funding yourself

Applying through a Kickstart gateway

A Kickstart gateway can be any type of organisation, such as a local authority, charity or trade body.

They will act as an intermediary and apply for funding on your behalf.

They may also provide employability support to the young people in the job on your behalf.

Kickstart gateways will:

gather information about the jobs you’d like to offer
share this information with DWP on your behalf
pay the funding to you

Follow this link for a list of the Kickstart gateways:

https://secure.dwp.gov.uk/find-a-kickstart-gateway

For more information on employing staff through the Kickstart Scheme please follow the government guidance below, and if you have any questions please get in touch with your Swindells partner:

https://www.gov.uk/guidance/kickstart-scheme-for-employers

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