1.6.2021 | TaxKickstart your business
Stephanie Hammond, director at Beatons Group, looks at how the scheme works and how to make the most of it.
Companies are now looking to get back to business with the coronavirus appearing to be in retreat in the UK.
Many sectors, however, especially the hospitality industry, are finding it difficult to recruit new staff.
Additional factors, such as Brexit, have put other industries in the same boat, with the Financial Times recently reporting the haulage and logistics sectors are facing a recruitment crisis.
To help maintain recruitment levels and get more young people back into work, the government has launched the Kickstart Scheme.
What is the Kickstart Scheme?
The Kickstart Scheme provides money to employers to create new jobs for 16 to 24-year-olds on universal credit who are at risk of being unemployed long-term.
Essentially, the government will pay 100% of the national minimum wage, or living wage depending on the employees’ age, for 25 hours a week.
These funds, which also cover an employer’s national insurance contribution and workplace pensions, will continue for six months.
The idea is to help companies recruit quickly as the UK reopens and give life chances and valuable experience to young people hit hard by the pandemic.
The hope is young people given a chance for employment through the scheme will then be recruited full time.
What do I get if I apply for the scheme?
As well as the Kickstart Scheme covering a young person’s wages, when a business is accepted on the scheme, they will immediately receive £1,500 of funding per job created.
This money will be used on set up costs and to support the young worker with training, allowing them to develop as an employee.
The funds could also be used to pay for a new uniform, IT and software or necessary equipment they need.
However, the Department of Work and Pensions may ask for records to show where the money has been spent.
How do I apply?
Businesses can apply for a Kickstart Scheme grant online or through a Kickstart gateway, a company already working with the scheme.
A Kickstart gateway can be any organisation – from local authorities to charities and trade bodies – that will act as an intermediary and can apply for funding on your behalf.
Click here to apply online.
If you need further advice, visit beatons.co.uk