The Kickstart Scheme: how does it work?

Last September, the Department of Work and Pensions (DWP) launched the £2 billion Kickstart Scheme, designed to create fully subsidised new job placements lasting 6 months for young people across the country. The placements are open to those aged 16-24 who are on Universal Credit and at risk of long-term unemployment.

Employers of all sizes can apply for funding 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
• Employer minimum automatic enrolment contributions

Employers can spread the start date of the job placements up until the end of December 2021. Further funding is available for training and support so that young people on the scheme can get a job in the future.

What’s changed?

Previously, you needed a minimum of 30 job placements in order to apply directly for a grant. Now, 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

You do not need to apply again if you’ve already successfully applied for a Kickstart Scheme grant.

What’s a Kickstart gateway?

A Kickstart gateway can be any type of organisation, such as a local authority, charity or trade body who already has a Kickstart Scheme grant agreement with the DWP. They can add employers and job placements to this grant agreement.

Kickstart gateways will:

• Gather information about the job placements you’d like to offer
• Share this information with DWP on your behalf
• Pay the funding to you (for example, the young person’s salary)

They may also offer employability support to the young people in the job placement.

Find a Kickstart gateway to apply for a Kickstart Scheme grant for you.

What you will receive

You will get £1,500 funding per job placement to be spent on setup costs and supporting the young person in developing their employability skills.

The funding could go towards costs such as:

• Training and employability support
• IT equipment and software
• Uniforms or Personal Protective Equipment

Application requirements:

• Your Companies House reference number or Charity Commission number
• Organisation address and contact details
• Details of the job placements and their location

What happens if your application is accepted

If you apply online, DWP will send the funding directly to you. If you apply through a Kickstart gateway, DWP will send the funding to them. The Kickstart gateway will be responsible for sending the funding to you.

Further guidance on applying for the Kickstart Scheme is available here.

If you would like any further advice, please contact a member of our team on 01903 234094.