The Kickstart Scheme provides government funding to employers to create new 6-month job placements for young people between 16 – 24 (18 for Security organisations) who are currently on Universal Credit and at risk of long-term unemployment.
SZ Compliance Consulting Limited is an approved Kickstart Gateway that supports and guide small businesses through the process.
How it works
The government has introduced a new Kickstart Scheme in the UK, a £2 billion fund to create hundreds of thousands of high quality 6-month work placements aimed at those aged 16-24 who are on Universal Credit and are deemed to be at risk of long-term unemployment. The Scheme aims to support young people in building their skills and experience so they can find long term work.
Requirements of the Scheme
- Ensure the role would not exist without this funding
- Not replace existing or planned jobs
- Not cause existing employees or contractors to lose or reduce their employment
- Provide the Kickstarter with employability support throughout the placement
How much funding will I receive?
Funding available for each job will cover 100% of the relevant National Minimum Wage for 25 hours a week, plus the associated employer National Insurance contributions and employer minimum automatic enrolment contributions.
You are to claim up to £1,500 per placement to cover the costs of equipment, training, and other associated new-starter costs. For £1000 of this initial payment we are able to offer employers a selection of CPD certified training and employability skills (a requirement employers must provide).
For each ‘Kickstarter’ job, the government will:
Cover the cost of 25 hours’ work a week at the National Minimum Wage e.g.:
- £4.62 for under 18s
- £6.56 for 18 to 20-year-olds
- £8.36 for 21 to 22-year-olds
- £8.91 for 23 and over
(Employers are able to top up the hourly rate or increase hours at the cost of the business should they wish to do so)
When will I get paid?
| Instalments | Grant sum payable | Payment date/milestone |
| 1st payment | One £1500 payment per Participant for set-up and support costs will be received by the Kickstart Gateway. The agreed £1,000 will be deducted for access to CPD certified training modules and the remaining £500 for set-up costs will be advanced to the Employer. | On confirmation to DWP’s satisfaction that the Participant has started employment with the Grant Recipient. |
| 2nd payment | 100% of the Relevant Wage for 25 hours a week of work by the Participant during the first month of the job, plus the associated employer National Insurance contributions and employer minimum automatic enrolment contributions. | Paid in arrears – on confirmation that Participant paid through pay-as-you-earn tax (PAYE) for the first month. This payment is expected to be in or around the 6th week of the placement. |
| 3rd to 7th payments | 100% of the Relevant Wage for 25 hours a week of work by the Participant during the subsequent second, third, fourth, fifth and sixth months of the job, plus the associated employer National Insurance contributions and employer minimum automatic enrolment contributions. | Paid in arrears – approximately every month after the 2nd payment on confirmation that Participant paid through PAYE for the previous month. |
How is the grant paid?
The funding would be initially transferred to us as your Kickstart Gateway, then as soon as the funding is confirmed, we will contact you to arrange a transfer into your business account.
FAQs
Here are some frequently asked questions regarding the Kickstart Scheme.
If you can’t find what you are looking for or would like some more information, we will be happy to help - please get in touch admin@szcompliance.onmicrosoft.com
What size of employer do I need to be?
We work with employers of all sizes.
I may only have the capacity to support one Kickstarter. Is this ok?
Yes, no problem at all! There are no minimum numbers.
Who can I offer the Kickstart placements to?
Candidates must be registered with Job Centre Plus, aged between 16 – 24 and in receipt of Universal Credit (UC).
If I have more than one position to offer, do I need to start all Kickstarters straight away?
No need to rush. Employers can spread the start date of the job placements up until the end of December 2021.
What happens if the Kickstarter ceases to be employed?
As part of the Kickstart Scheme during any month (either because the Participant leaves their job or has their employment terminated), the payment for that month will be reduced on a pro rata basis.
How do I get started?
