Advice Note: the Kickstart Scheme

Advice Note: The Kickstart Scheme

Summary

The Kickstart Scheme is a government initiative which provides funding to employers. This is with a view to creating new job placements for 16 to 24 year olds on Universal Credit who are at risk of long-term unemployment. Further detail about the Government scheme can be found here.

Who does this apply to?

This advice note is relevant to all Schools and Multi-Academy Trusts intending to use the Kickstart Scheme to fill any newly created roles.

How much funding does the employer receive?

Employers receive £1,500 in funding per job placement. This is for setup costs and to support the young person in developing their employability skills.

Additional grant funding 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

− employer minimum automatic enrolment contributions Employers can pay a higher wage and for more hours, but the funding will not cover this.

Are there any criteria for the job placements under the scheme?

Yes, the guidance states:

“The job placements 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 job placements 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 placement, 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” How do employers receive funding?

The £1,500 funding is received when the person starts the placement. It is paid monthly in arrears and the Department for Work and Pensions (DWP) will use information from HMRC to check that the young person is still employed. The grant funding to pay the young person’s salary will be paid in monthly arrears when DWP know they are:

− enrolled on the employer’s payroll

− being paid through Pay As You Earn (PAYE) If the employer uses a Kickstart gateway, the funding is paid to the gateway and they pass the funding to the employer.

How long is the funding available for?

Employers can spread the start date of the job placements up until the end of December 2021.

How many placements can an employer create to receive the funding?

A Kickstart Scheme application must be for a minimum of 30 job placements. If a single employer cannot provide this many job placements, they can find a Kickstart gateway, such as a local authority, charity or trade body for help applying. DWP performs due diligence checks on these organisations. Employers can look up details of Kickstart gateways who have advised they’re interested in helping. See here to find a Kickstart gateway.

How do employers apply?

The application turnaround process is expected to be one month. Employers need to have a minimum of 30 job placements before applying. Employers will need to provide information about the job placements during the application. Public sector organisations and exempt charities should enter ‘0’ when asked for a Companies House or Charity Commission number. Applications can be made here.

Details needed for application:

− The Companies House reference number, Charity Commission number or Office of the Scottish Charity Regulator number, if you have one

− The organisation address and contact details

− Details of the Kickstart Scheme 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

− Kickstart funding terms and conditions: https://www.gov.uk/government/publications/kickstart- scheme-terms-and-conditions/kickstart-scheme-grant-funding-agreement-terms-and-conditions-for- employers--2 How do employers receive information about suitable candidates?

The guidance says:

“If your application is successful: 1. You will give DWP job descriptions that work coaches at Jobcentre Plus will use. 2. The work coaches will match suitable candidates to the job placements. 3. DWP/the Kickstart gateway will send you the candidate details. 4. You’ll then be able to interview the candidates matched to your job placements. 5. You’ll select the candidate best suited to the role.”

What happens if the individual on the scheme is not performing?

If an individual does not perform, employers can terminate the contract following their usual procedure. Should an individual be dismissed and/or drop out of the placement, there is not a requirement for them to be replaced but they can be.

Are there any changes that Schools need to make to their employment contracts if they use the scheme?

Yes, EPM has template wording for you to consider adopting and we can set up any new roles on the relevant grades/minimum wage/living wage. Please just provide us with details about the placements and the salary associated with them. In the notes field on the Portal please add ‘KICKSTART’ as below.

Useful Links

Kickstart Scheme

National Minimum Wage

National Living Wage

This EPM Ltd document contains general guidance and is not intended to be a substitute for specific advice. Advice should be sought from your EPM Adviser in relation to individual matters. Where hyperlinks are provided to third party websites, EPM is not responsible for the content of such sites.