Kickstart Scheme

Last updated 26 January 2021

The Government’s Kickstart Scheme provides funding to employers to create job placements for 16 to 24 year olds on Universal Credit. It was introduced in September 2020.

Employers of all sizes can apply for funding which covers 100% of the National Minimum Wage for 25 hours per week for a total of 6 months, and all associated NIC and minimum automatic enrolment qualifying pension contributions.

Businesses will also get £1,500 per job placement to cover setup costs, support and training.

What job roles are eligible for the scheme?

The job placements created with the Kickstart Scheme funding must be new jobs.

The job placements must not:
• Replace existing or planned vacancies
• Cause existing employees, apprentices or contractors to lose work or reduce their work hours.

The job placements must:
• Be a minimum of 25 hours per week for 6 months
• Pay at least the National Minimum Wage for the employee’s age group
• Only require basic training before they begin the job placement

Every job placement must help the young person become more employable. This could include CV support and interview preparation, skills development in the workplace or careers advice and setting goals.

The government has recently announced some changes around the process required depending on the number of placements being offered and their guidance can be found here.

Alongside the Coronavirus Job Retention Scheme and numerous other support schemes for employers, it is important that payroll teams provide accurate information and data to enable HMRC to approve a claim. If you need support in these areas, please contact us.