Government launches £2 billion Kickstart scheme to get young people into work

The Government has launched a new scheme to get young people into work
REUTERS
Kit Heren2 September 2020

The Government has launched a £2 billion scheme to get young people into work, as the jobs market continues to struggle amid the coronavirus crisis.

The Kickstart programme, set to create thousands of jobs across the country, targets people between the ages of 16 and 24 who could be "left behind" because of the pandemic, Chancellor Rishi Sunak said.

Companies can offer young people six-month work placements subsidised by Universal Credit payments under the scheme, which began on Wednesday.

The Government will also give employers an extra £1,500 for training and support for new employees as part of the programme.

London's empty network continues during Coronavirus

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Young people were much more likely to be furloughed during the pandemic than the general population of the UK. Around 540,000 people under 24 were on Universal Credit in July – up by a quarter of a million in four months.

Mr Sunak said: “This isn’t just about kickstarting our country’s economy – it is an opportunity to kickstart the careers of thousands of young people who could otherwise be left behind as a result of the pandemic.

“The scheme will open the door to a brighter future for a new generation and ensure the UK bounces back stronger as a country.”

As part of the scheme, the Government will pay all of an employee's National Minimum Wage dependent on age, National Insurance and pension contributions for 25 hours a week.

Major employers including Tesco and Network Rail have signed up to offer jobs through Kickstart, with the supermarket chain saying 1,000 positions will come about through the scheme.

Kickstart will initially run until December 2021.

There is no guarantee of future work at the end of six months under the scheme 
AFP via Getty Images

Therese Coffey, Secretary of State for Work and Pensions, said: “As we launch our £2 billion Kickstart programme, putting young people at the heart of our revival – we are urging businesses to get involved in this innovative scheme and take advantage of the enormous pool of potential out there.

“Young people taking part will receive on-the-job training, skills development and mentoring, as we get them on that first rung of the jobs ladder and on their way to successful careers.”

Labour said Kickstart did not appear to be well organised and might not give young people confidence that placements could lead to "meaningful" work. There is no onus on employers to offer people on the scheme more work after six months.

Many businesses have cut jobs due to lack of work during the pandemic 
AP

“Labour has repeatedly called for a youth employment scheme that matches the scale of today’s jobs crisis, just as the Future Jobs Fund did at the time of the global financial crash,” Shadow Chancellor Anneliese Dodds said in a statement.

“The Labour Government in Wales has done just that with its Jobs Growth Wales scheme: bringing local authorities, employers, trade unions and other stakeholders together to help young people into work without impacting older workers.

“But the Conservative government’s Kickstart scheme, which has been delayed, already looks like it lacks that cross-organisational coordination. It will only work if employers and jobseekers have clarity and confidence that the scheme will lead to meaningful work. The Government can’t afford to get this wrong.”

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