- 27th July 2020
- Posted by: Edward Kirkby
- Category: Coronavirus
Covid-19 has placed incredible pressure on the economy and our jobs. As we start to come out of lockdown, the Chancellor Rishi Sunak announced earlier this month the introduction of the ‘Kickstart Jobs Scheme’, to help support the employment rates of young people.
Under the scheme, the Government will fund the wages of employees up to 100% of National Minimum Wage for 25 hours a week over a 6-month placement period.
This will see an investment of £2bn in an attempt to boost employment opportunities for 16-24 year olds claiming universal credit and at risk of long-term unemployment.
It is set to open for applications in August, with the first jobs expected to start in the autumn and run until December 2021, with the option of being extended.
For each ‘kickstarter’ job, the Chancellor revealed the Treasury will cover the cost of 25 hours work a week at the National Minimum Wage; £4.55 for under 18s, £6.45 for 18-20 year olds and £8.20 for 21-24 year olds.
On top of this, the Government is aiming to provide 30,000 new traineeships for young people in England, giving firms £1,000 for each new work experience place they offer.
The announcement is part of a wider ‘Plan for Jobs’ campaign, designed to support the rebuilding of the economy whilst maintaining the health of the population during the pandemic. It hopes to encourage every employer, big or small, to help the cause and hire as many kickstarters as possible.
Employers will be given the opportunity to top up wages and there will be no cap on the number of placements made available.
To support the economic recovery, it’s important that young people have an opportunity to kickstart their career while playing a key role in the rebuilding of their communities, steering the UK away from financial crisis.
For further information on the Kickstart Scheme please contact an Accounts Lab advisor.