In September 2020, the Government launched a scheme that would provide 16-24-year-olds that are on universal credit, the opportunity to find work with a reputable employer.
The placement can start at any time between Sept 2020 and Dec 2021.
The kickstart scheme is for a minimum of 30 job placements. If an employer cannot find 30 jobs within their organisation, they may be able to apply for the funding through their local council and under a different process (Kickstart Gateway).
What the Government will pay for?
The employer will receive £1500 per job placement. These are your start-up costs and to develop your employee in getting the training. If you are receiving the money through a Kickstart Gateway, you may have to agree how to share this money.
Kickstart Scheme wages and related costs
Employers would apply for funding for:
- 100% of the national minimum wage (for 25 hours per week for 6 months)
- 100% of the living wage (for 25 hours per week for 6 months)
- All the employer’s national insurance contributions for the employee’s salaries during this period
- Employer’s minimum automatic enrolment contribution
The Department of Work and Pensions will send funding payments in monthly arrears to the employer. But they will need to clarify they are still employed and you are being paid through PAYE.
You can employ them for more hours and a higher salary but the scheme will not cover this.
Kickstart Gateway
The Kickstart Gateway (find a Gateway here) will also get £300-£500 for each job placement for admin costs. Your local council may have a gateway scheme running.
The Job Placement
The jobs should not replace the existing planned vacancies, cause a loss of work to other workers, and it must be for a minimum of 25 hrs per week for 6 months, and pay at least the minimum wage.
Mentoring
You must act as a mentor for the employee and help them in obtaining long-term work, by giving career advice, setting goals, helping them write their CV’s and develop their skills with them.
Starting A New Scheme
Employees that have been on the scheme once may be able to join another scheme once they have completed a 6 month period with an employer.
Attracting Candidates
You can employ the services of professional recruiters, advertise on job boards, promote on your own website and social media, but also communicate with the local JobCentre who will match candidates to your roles.
What Else Do I Need To Know?
You will be expected to have your offer ready for the employee when starting such a scheme – what you will give them in return for their hard work: pension scheme, annual leave, bonuses, sick pay schemes, etc. There are many financial and non-financial rewards used to motivate employees and it’s important to think about these very early on as these are part of what will set your organisation’s culture. Therefore, having a clear definition of your employment terms on employment contracts and a detailed employee handbook/HR policies that will set out how you as the employer will operate when dealing with employees, is very important. HR Consultancies can give you guidance on this and design your employment contracts and handbook/HR policies for you.
If you wish to know more about how the scheme or would like your employment contracts and employee handbook/HR policies drafted, please get in touch: 08004947749 / hello@specialisedhr.co.uk
Visit: www.specialisedhr.co.uk