Kickstart Grant Scheme for Employers

Posted on 3rd September 2020

The government have now published information on the new Kickstart Scheme for employers which aims to help businesses create high quality 6-month job placements for 16-24 year old’s.

The full guide can be found online but we have summarised the key points below:

What is the purpose of the scheme?

You can use the Kickstart Scheme to create new 6-month job placements for young people who are currently on Universal Credit and at risk of long-term unemployment. The job placements should support the participants to develop the skills and experience they need to find work after completing the scheme.

How much funding can I claim?

Funding is available for 100% of the National Minimum Wage for 25 hours a week. You will also be able to claim for NI contributions and employer auto enrolment pension contributions.

There is also £1,500 available for each placement for setup, support and training.

Is there a minimum number of placements that I need to offer?

Yes, you must be offering a minimum of 30 placements in order to be eligible for the scheme. If you are unable to provide this amount of placements, you may partner with other business to reach the minimum level.

Whoever applies on behalf of the group will be able to claim £300 for administrative expenses.

For more information about becoming  representative for a group of employers, go to https://www.gov.uk/guidance/check-if-you-can-apply-for-a-grant-as-a-representative-of-a-group-of-employers-through-the-kickstart-scheme

Is this an apprenticeship?

The kickstart scheme is not an apprenticeship but you may move the employee onto an apprenticeship at any time during the 6-month placement, or once the placement has been completed.

Who can apply for the funding?

Any business can apply for the funding regardless of size, but the jobs must be newly created and you cannot use the scheme to fill an existing place or instead of making redundancies. Also, the placement must not cause any other employees to lose their job.

What sort of roles can the funding be applied to?

The roles you are applying for funding for must be:

  • a minimum of 25 hours per week, for 6 months
  • paid at least the National Minimum Wage for their age group
  • should not require people to undertake extensive training before they begin the job placement

Once a job placement is created, it can be taken up by a second person once the first placement has been completed.

How do I apply?

All applications must be made on the government website https://www.gov.uk/guidance/apply-for-a-grant-through-the-kickstart-scheme

If you are creating less than 30 placements, you will not be able to apply until you have partnered with other businesses. Some examples could be:

  • similar employers
  • local authorities
  • trade bodies
  • registered charities

As always, if you need our help with this or any other HR advice then do call us on 01536 215240.

Carla Cifaldi Character
Written by:
Carla Cifaldi
HR Consultant