A Guide to the Kick-Start Scheme for SMEs
Posted on 3rd June 2021 at 10:23
How the scheme works
The Government Kickstart Scheme provides funding to create new jobs for 16- to 24-year-olds on Universal Credit (Job Seekers’ Allowance) who are 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
Any relevant workplace pension contributions (automatic enrolment)
Employers can spread the job start dates up until 31 December 2021. You will get funding until 30 June 2022 if a young person starts their job on 31 December 2021. Further funding is available for training and support so that young people on the scheme can get a job in the future.
How to apply
You can apply for a Kickstart Scheme grant by either: applying online yourself (link at the bottom of this guide) or applying through a Kickstart gateway who is already working with the Kickstart Scheme. You do not need to apply again if you have already successfully applied for a Kickstart Scheme grant.
What is a Kickstart gateway?
A Kickstart gateway can be any type of organisation, such as a local authority, charity, or trade body. They will act as an intermediary and apply for funding on your behalf. They may also provide employability support to the young people in the job on your behalf. Kickstart gateways will:
gather information about the jobs 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)
What you’ll get
You’ll get £1,500 funding per job. This should be spent on setup costs and supporting the young person to develop their employability skills. For example:
Training and employability support (provided by you, a Kickstart gateway or another provider)
IT equipment and software uniform or Personal Protective Equipment
Kickstart Scheme wages and related costs
The funding covers:
100% of the National Minimum Wage (or the National Living Wage depending on the ago of the participant) for 25 hours per week for a total of 6 months
Associated employer National Insurance contributions
Any relevant workplace pension contributions (automatic enrolment)
Employers can pay a higher wage and for more hours, but the funding will not cover this.
What the Kickstart gateway will get
Kickstart gateways will get £360 for each job to cover admin costs. They may have to pay VAT on this amount depending on their individual circumstances. If they do not pay VAT, £60 from this payment will be paid to you by the Kickstart gateway (in addition to the £1,500 funding for setup costs) to further support the young person.
Job criteria
The jobs created with Kickstart Scheme funding must be new jobs. They must not:
Replace existing or planned vacancies
Cause existing employees, apprentices, or contractors to lose work or reduce their working hours
The jobs must:
Be a minimum of 25 hours per week, for 6 months
Pay at least the National Minimum Wage or the National Living Wage for the employee’s
Age group
Only require basic training
For each job you must help the young person become more employable. This could include:
Looking for long-term work, including career advice and setting goals
Support with curriculum vitae (CV) and interview preparations
Developing their skills in the workplace
If you are not eligible for Kickstart Scheme funding, there are other employment schemes available including Apprenticeship Incentives. The young person may be able to move to another employment scheme when they have finished their 6-month Kickstart Scheme job.
Link for More Details on Eligibility and to Apply for Funding:
https://www.apply-kickstart-grant-employer.service.gov.uk/
As with all funding, DWP performs due diligence checks on all employers and Kickstart gateways.
Need more support? We offer our PAYG service to support hiring including KickStart and Apprentices.
How Humber HR People Can Help:
We can help identify if the Kickstart Scheme applies to you
If Kickstart does not apply, we can help you to explore other areas of funding including Apprenticeships (open to candidates from all ages)
We can help write job descriptions, apply for funding, and guide you through a hiring process for a young person liaising with the DWP and performing our usual through recruitment process including background checks and references
Our next complimentary Directors' Breakfast on the 15th July 2021 will focus on how to promote your businesses training opportunities to the best candidates. Book on today to secure a space: https://www.humberhrpeople.co.uk/events/
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