Chancellor announces ‘Kickstart’ jobs scheme

Chancellor Rishi Sunak recently announced an initial £2 billion ‘Kickstart’ scheme which will fund hundreds of thousands of “good quality” 6-month work placements for young people aged 16-24 receiving Universal Credit.

The scheme comes as part of an emergency package in an attempt to prevent mass and long-term unemployment in “every region and nation of Britain”. Employers taking part in the scheme will be required create new jobs for 16-24 year olds, providing them with training and support to boost job prospects and permanent jobs. Mr Sunak has confirmed that there will be no cap on the places available under the scheme.   

The Government will provide funding to cover 100% of the relevant National Minimum Wage for 25 hours a week for each employee, with an additional amount to cover overheads. Employers are able to top up wages above the minimum wage if they wish. Funding will be conditional on the employer proving that such jobs are additional.

The scheme is available to all employers, with applications expected to open next month (August 2020), allowing employees to commence work this autumn.

The Government is due to announce further details regarding the scheme however a date has not yet been confirmed for when we can expect this.

For more information on the Government’s policy paper ‘A Plan for Jobs 2020’ which details additional funding and job support, please follow this link.

These notes have been prepared for the purpose of an article only. They should not be regarded as a substitute for taking legal advice.