Benefit of the Kickstart scheme for businesses
The Kickstart scheme is design to help young people aged 16 to 24, who are on risk of a long term unemployment and universal credit into employment. The government recently launched £2bn Kickstart Scheme. The incentive for businesses who help at-risk young people get back into work. Chancellor Rishi Sunak proposed in his July 2020 Summer statement. The scheme aims to help young people on Universal Credit who have lost jobs and opportunities due to COVID-19 back to work.
The Government is subsidies this scheme and paying 100 per cent of the age-relevant National Minimum Wage, National Insurance and pension contributions. The government is confident that the scheme will generate more than 350,000 new jobs.
What are the benefits of the Kickstart scheme for young people?
The Kickstart scheme jobs funding provides the national minimum wage for 25 working hours a week (dependent on the workers age). National insurance contributions and an automatic enrolment pension contributions. The scheme contains a contract that lasts 6 months once the person has started their job. Opportunities across all sectors and in a range of disciplines are being create for young people. Thousands have already secured placements since the introduction of the initiative.
How could this scheme benefit businesses?
The Kickstart scheme encourages businesses to create jobs for the younger people. Therefore, both are benefit. A lot of business reports are now having new and different perspectives that allow more innovation creating new revenue streams . A younger person might find new ways to protect the longevity of the business. It looks better for a business’s reputation and showing new opportunities are created there.
Businesses are keen to support young people reap the benefits of having youthful expertise. Apprenticeships have been the most common route to take. Now the rise in businesses using the Kickstart scheme. It will help more young people to learn and acquire the skills. The young people needs to excel in their chosen career path.
The funding by the government covers the cost of the new employee’s costs and wages. It is including the national insurance and pension costs. Also, with an additional £1,500 per job for any set up costs or training. The scheme offers the firms the full funded program for employing the young workers. There is not any enforcement a commitment to permanent roles after the contract has ended.
What else do businesses need to know?
A comprehensive guide to the Kickstart scheme is available on the Government website.
Employers are able to spread the job start dates right through until 31 March 2022, and businesses will receive funding until 30 September 2022 if a young person starts their job on 31 March 2022.
Further funding is also available for training and support, so that young people on the scheme can get a job in the future, even if that is not with your business.
The Kickstart scheme gives businesses a fully government funded program with a new employee. Young people desired to learn new journey. It allows businesses to take less risk when employing someone new by losing no finances. The business will gain additional finances for further training needed.
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