Today we are launching the kick-start scheme, which was announced by the Chancellor as part of our plan for jobs in his statement on 8 July. This £2 billion programme will fund the direct creation of additional jobs focused on young people at risk of long-term unemployment to improve their chances of progressing to find long-term, sustainable work.
As we build back our economy and return to work we know that for many young people a lack of work experience can be a barrier to taking that first step on the jobs’ ladder. That is why we are taking steps to help young people gain experience through the kick-start scheme and a foothold in the world of work.
The scheme is open to employers from across the private, public and voluntary sectors. Through the scheme, employers will be able to access a large pool of young people with lots to offer, ready for an opportunity. Organisations of all sizes are encouraged to participate. Organisations with a small number of placements will be expected to bid through intermediaries or umbrella organisations like local enterprise partnerships, business trade associations or local Government, ensuring the necessary support is in place to enable them to deliver placements effectively.
Employers will need to show that these are additional jobs and that the kick-start role will provide the experience and support a young person needs to improve their chances of permanent employment. People will be referred through the Jobcentre Plus network. Employers will be able to interview candidates for the roles they offer.
Funding available for each job will cover the relevant national minimum wage (NMW) rate for 25 hours a week, plus the associated employer National Insurance contributions, and employer minimum automatic enrolment contributions. It will also include £1,500 for start-up and wraparound support for people of a kick-start placement.
Today we are calling for employers to bid to be involved in the scheme, with the first job placements expected to begin in November. The bid application and information to support employers will be available online through www.gov.uk/kickstart.