Government Kickstart Scheme to be extended till March 2022!

The chancellor of the exchequer, Rishi Sunak has announced the extension of the government run kickstart scheme at the conservative party conference.

The scheme which was put in place to help small business and offer young people aged 16-24 who were at risk of facing long-term unemployment jobs, has proven to be a success. The government will now continue to fund individual’s on the scheme until March 2022, instead of the proposed December 21 end date.

How does the scheme help businesses and young people?

Entrepreneurs have said this scheme is extremely helpful in getting businesses back on their feet, after the impact of the COVID-19 pandemic. Diane Beresford, an East Midlands deputy chief executive has stated, “This is positive news for many businesses, as companies are now starting to grow and build again. This is also big for young people who have been mentally and/or physically impacted by the pandemic, it gives them a chance to get back into the right direction and gain skills and experience needed to build their future.”

The scheme was started in September 2020 and were estimated that there were a total of 196,300 jobs. Unfortunately, by September ‘21 only 76,000 ~. Only 39% of job vacancies were fulfilled, which is a shame due to the positivity and helpfulness of the scheme. Although, it has been argued to be down to the delays with systems, replying to emails and miscommunication between DWP reps and starters/companies. However, some business owners have complained that the scheme is too complex and tedious to use.

How funding works

The scheme which begun in September ’20 had set off with a budget of £2 billion to accommodate 250,000 jobs by 2021 December.

Sunak first introduced £2,000 to take on apprentices aged 16-24 and £1,500 for those aged 25+. However, by February ’21, it was increased to £3,000 for all new apprentices.

The DWP (Department for work and pensions) funds 100% of wages for employees in the scheme, at national minimum wage for 25 hours a week over the six-month period. Employers have the option to add an additional amount to this wage from their own earnings, or by providing more hours weekly. Employers are given a £1,500 grant for providing the necessary training for employees.

Written by Abi Raji

For more information on funding or for help getting started visit GOV.UK/Kickstartscheme