Under the latest Kickstart plan, the government plans to create jobs for as many as 250,000 young people who already earn Universal Credit (UC). Initially reported in the July Economic Statement, the details of the scheme have now been published and the first placements should be available from November onwards. If you're looking for accountants in London, then our Accotax team is the best at the job.
For 16 to 24-year-olds now earning UC, who are seen to be among the most vulnerable to unemployment, Kickstart encourages employers to obtain support for six-month job placements.
Financing proposals must be for new employees, with the financing conditional on the company proving that they are adding jobs. This means that current or expected vacancies will not be filled and should not cause existing workers or contractors to lose or decrease their jobs.
Under the scheme, the government will pay 100 percent of the relevant National Minimum Wage (NMW) for 25 hours a week. For 16 to 24-year-olds, concentrations are currently as follows:
Age inferior to 18-£4.55 per hour
Ages 18 to 20, £6.45 per hour
Age 21 to 24 £8.20 per hour
Under the scheme , the Government will also pay National Insurance Contributions (NICs) to the related employer and, where appropriate, the employer's minimum compulsory enrolment pension contributions.For setup costs, uniforms, resources and training, there is also £1,500 per work placement available, but employers may need to demonstrate in their application how they plan to help participants improve their skills and experience, including:
· Help for the hunt for long-term work, including job advice and goal setting;
· Support with CV and interview plans; and
· Supporting the individual with basic skills, such as dedication, timekeeping and collaboration;
When a job placement is made, it can be taken up by a second person after the first successful applicant has completed their six-month contract.
According to the Department of Work and Pensions (DWP), after completing their Kickstart scheme-funded work, further resources would also be available to assist young people to develop their knowledge and help them transition into sustainable jobs.
Initially, there was some debate about the scheme as employers taking on fewer than 30 new young workers were barred from applying directly for funds. However, it has now been confirmed that employers who are unable to meet the placement number requirement can work to satisfy the minimum number requirement with other organisations. Furthermore, the person appealing on behalf of the group would request additional funding of £ 300 per job placement to cover the associated administrative costs of bringing together workers.
Smaller companies may also be qualified to apply via an intermediary, such as a Local Authority or Chamber of Commerce, which can then compete for 30 or more placements from multiple enterprises as a joint bid. This would make the process simpler and less time-intensive for these smaller businesses to apply. Only one or two Kickstarters should consider recruiting.
Initially, until December 2021, the scheme to be delivered by the DWP will be open, with an option to be extended.
Applications for funding can be submitted online and more information can be found under Apply to the Kickstart Scheme for a grant.
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