Details of the scheme were launched on the 2nd September 2020 on the gov.uk website.
The new Kickstart Scheme is a £2 billion fund to create hundreds of thousands of high quality 6-month work placements aimed at those aged 16 to 24 who are on Universal Credit and are deemed to be at risk of long term unemployment.
Funding available for each job will cover 100% of the relevant National Minimum Wage for 25 hours a week, plus the associated employer National Insurance contributions and employer minimum automatic enrolment contributions.
How the scheme works
- 6 month job placements for young people 16-24
- Placement should support the participant develop the skills and experience they need to find work after completing the scheme
- Employers can apply directly for placements if they have a minimum of 30 job placements on offer
- Employers with smaller numbers of placements can partner with other organisations who are ‘Representatives’ and/or ‘Intermediaries’.
Who is eligible
Any organisation, regardless of size, can apply for funding.
The job placements created with Kickstart funding must be new jobs. They must not:
- Replace existing or planned vacancies
- Cause existing employees or contractors to lose or reduce their employment
The roles you are applying for must be:
- A minimum of 25 hours per week, for 6 months
- Paid at least the National Minimum Wage for their age group
They should not require people to undertake extensive training before they begin the job placement.
Each application should include how you will help the participants to develop their skills and experience
How to apply for 30 or more placements
If your organisation is creating more than 30 job placements as part of the Kickstart Scheme, you can submit your application directly online at Gov.uk.
You will need:
- The Companies House reference number or Charity Commission number
- The organisation address and contact details
- Details of the job placements and their location
- Supporting information to show that the job placements are new jobs and meet the Kickstart Scheme criteria
- Information about the support the organisation can give to develop employability skills of young people
How to apply for less than 30 placements
If you are applying for less than 30 job placements, you must apply through a representative of a group of employers (Nottingham Jobs).
We can submit an application on your behalf, using other employers to create 30 or more job placements in one application.
What happens next
Your application will be reviewed by DWP to check it meets the requirements of the Kickstart Scheme. It will then go to a panel for consideration. This is not a competitive process, but Kickstart will only provide funding when the job placements meet the criteria.
DWP may contact you for further information as part of your application.
DWP aim to respond to your application within 1 month.
If your application is successful
If your application meets the requirements of the scheme, you will receive a letter with a grant agreement. This agreement will include what your company has agreed to provide, and how much funding you will receive from the Kickstart Scheme.
You must sign and return your grant agreement, using the details in the letter, before any job placements can begin.
You will need to provide job descriptions for each of the job placements you applied for. This should include what candidates need to do to apply for the job placement.
You will then be contacted to arrange Interviews or Sector-based Work Academy Programme, first placements will start from 1st November 2020.
How will the funding be paid
You will receive initial setup costs when you have confirmed the young person has started work, is enrolled on your payroll and is being paid through PAYE.
DWP will use information from HMRC to check that the young person is still employed, and will pay the grant in arrears.
For each person placed in a Kickstart role Government will pay the employer the salary (£6.5k) and a grant for wrap around support (1.5k).
The salary will either be paid direct to the business (if applied for more than 30 placements and did not need an intermediary) or to the intermediary (intermediaries will process the payment for the smaller businesses with less than 30 placements). The first payment will come at the end of month 2 (3rd of salary), month 4 (3rd of salary) and month 6 (final 3rd).
The 1.5k fund for support can be spent in any way the employer chooses but must be detailed in their bid – this could include payment for equipment, training and/or uniform etc. The employer could even pay the intermediary some of the money if elements of the support need to be outsourced depending on what support is needed.
For each placement the intermediary supports they will get a £300 payment for acting in this coordination role.
DWP Work coaches will:
- Identify suitable candidate for the job placements which are due to start Nov 2020.
Nottingham Jobs Team will:
- Support the participant to prepare for applying for the job placements (Through W2W & YEI partners).
- Arrange SWAP (Sector-based Work Academy Programmes) preparing candidates for vacancies.
- Support employers to apply for job placements.
- Act as a point of contact and conduit to DWP for questions and enquiries from employers and candidates.
- Gather information from employers who wish to apply for the scheme.
- Introduce SMEs to further support available through the wider Nottingham Jobs Service, D2N2 Skills Access Hub and D2N2 Growth Hub.