Changes to Kickstart Scheme – 30 employee threshold removed

The Kickstart Scheme provides funding to create new job placements for 16 to 24-year olds on Universal Credit who are at risk of long term unemployment. Employers can apply for funding which 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.

This scheme is open to businesses of all sizes but those aiming to employ less than 30 people under the scheme were previously required to use a Gateway service to co-ordinate with DWP regarding placements.

However, the government has announced that it is amending the scheme so that, from 3 February 2021, it is removing the 30 employee threshold, so businesses of all sizes, including sole traders, can apply directly to the Kickstart scheme for any number of job placements. (You can still choose to apply for employees through a Kickstart Gateway provider but new applications to be a Kickstart Gateway provider are ending on the 28 January, as it is considered that the existing 600 gateway providers are sufficient for the number of businesses that may still want to use this route.)

The guidance for the Kick Start scheme was updated in early March to include more detail on the process for hiring an employee and the payment schedule for people employed through the scheme. The process for recruiting someone is:

  • You or your Kickstart gateway will give DWP job descriptions that work coaches at Jobcentre Plus will use to match candidates to the job placements.
  • You or your Kickstart gateway will receive a notification email each time a young person is referred to the job placement (‘referrals’).
  • Referred candidates may choose to apply for the job placement.
  • You’ll then be able to interview the candidates who have applied.
  • You or your Kickstart gateway will tell DWP when the young person has started so they can process the funding.

Read more about the amended rules of the Kickstart scheme here.