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Government Kickstart Scheme

Kickstart Scheme Discussed by Hayvenhursts Chartered Accountants

The UK Government’s Kickstart Scheme opened for employer applications on 2nd September 2020. It provides funding to businesses to create new job’s for 16 to 24-year-olds who are currently receiving universal credit. The Kickstart scheme has been introduced as its the 16 – 24 years who are deemed to be at risk of long term unemployment in the UK. 

When the Kickstart Scheme was announced during Chancellor Rishi Sunak Summer Economic Update, he 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.’

He announced the scheme in his statement in his summer economic update, offering £2 billion pounds to the Kickstart Scheme which was formulated to help fund employers for the exact purpose of creating new jobs for the young people of the UK.

What is the aim of the Kickstart Scheme?

The aim of the Kickstart Scheme is to support and encourage the employment and training of young people between the ages of 16 to 24 who are currently claiming universal credit most likely because of the Covid-19 pandemic.

There are over 3.2 million employees in the UK who are supported by universal credit payments and a considerable proportion of these are young people. 

The government’s new scheme forms part of their ‘Plan for Jobs’ and its aimed at creating new jobs and careers for young people which is funded by the government. The scheme is available to businesses and organisations if they create jobs and hire people between the ages of 16 to 24 who are currently being paid universal credit. The aim of the Kickstart Scheme is to promote and support young people to get back out to work and learn new skills, avoiding the need for furlough payments and long term unemployment. One of the main aims of the scheme is about reducing unemployment in the UK now and in the future and generating new skills throughout the younger population.

Which Businesses will be eligible for the Scheme?

UK businesses can join the scheme if they are able to create and subsequently employ 30 new employees who meet the Kickstart Schemes criteria. If as a business you are unable to create this many new positions you can join with other organisations or businesses to enable you to jointly reach a minimum of 30 new roles. 

The government will pay employers £1,500 to help with the set up, support and training for the 30 new positions. The funding is available following a successful application and placement process. 

How does the Kickstart Scheme work? 

  • Funding is agreed through an application process
  • Funding covers 100% of the National Minimum Wage (NMW) for 25 hours per week
  • Funding covers the associated National Insurance contributions (NICs) 
  • Funding covers the employer’s minimum automatic enrolment pension contributions
  • Selected out-of-work young people are to be offered 6-month work placements and the scheme will last for 6 months 
  • Work placements have to be at least 25 hours per week to help them gain experience, skills and confidence
  • The scheme will pay employers £1,500 to help with the role set up, support and training for the positions 
  • The purpose of the scheme is as a stepping stone to further employment with the employer or with other employers after the 6 month contract has ended

In summary, the Kickstart Scheme is available to employers to fund the creation of new 6-month job placements, for a minimum of 25 hours per week for young people between the ages of 16 and 24 who are currently on universal credit and at risk of long-term unemployment.

What can the additional £1500 form the Kickstart Scheme be used for?

  • The additional payment of £1,500 is available for each job placement
  • It can be used for training and ongoing support costs
  • It can be used to support the set up of the placement

What happens after the 6 months Kickstart Scheme Placement?

After the completion of the 6-month placement, extra funding will be provided by the government to help expand the persons experience to support them to achieve long term sustained employment.

When does the Kickstart Scheme start?

Applications from employers are already underway and the first jobs offered through this scheme should be open from November onwards if successful applicants who meet the criteria have been placed in the placements.

Am I eligible to apply for the Kickstart Scheme?

You can apply for the Kickstart Scheme here ( . Funding is available once your application has been approved and you have met the criteria for advertising and filling the new placements. 

The criteria for a successful Kickstart application and for funding to be paid is as follows;

  • The job placements must be new and cannot be replacing any planned or existing job vacancies
  • The job placements must not result in existing employees or contractors having their role or hours reduced within the business
  • The job placements must not result in existing employees or contractors losing employment within the business
  • The new job placements must be for a minimum of 25 hours per week
  • The new job placements must be for a minimum of 6 months
  • The new job placements must be paid at least the National Minimum Wage (NMW) which is relative to the age of the employee
  • The new job placements should not need significant training before the placement begins as the majority of the training should be on the job training
  • The new job placements must only be for people between the ages of 16 – 24 who are on Universal Credit and potentially facing long-term unemployment
  • There must a minimum of 30 new job placements advertised and filled 

Applications for the Kickstart Scheme are only successful if there are a minimum of 30 new job placements. If as a business you are unable to offer this many placements then you can partner with another organisation, or multiple organisations to collectively offer the required 30 new job placements. You would submit your Kickstart application as one application. 

In addition to this, applications for the Kickstart Scheme funding should detail how you as an employer will support the new placements to develop themselves, learn new skills and increase their experience during the 6 months with you. 

Additional support from employers can include:

  • Supporting the successful person to look for long-term work during, or as they near the end of their 6 months with you, e.g. careers advice.
  • Supporting them to prepare their CV 
  • Supporting them to prepare for interviews and gain interview experience
  • Supporting them with key skills such as timekeeping, teamwork and attendance and ensure they understand the importance of these essential behaviors

How do I apply for the Kickstart Scheme?

As an employer, you can apply for the Kickstart scheme online here. (

What information will I need for my Kickstart Scheme Application?

When you have identified the 30 new job placements you will advertise you will need the following information for your application:

  • Companies House reference number or Charity Commission number
  • Business or organisation address 
  • Business or organisation contact details 
  • new job placements details and location
  • The support your organisation will be providing to develop the young peoples’ employment skills.
  • Be able to provide evidence the 30 job placements are new positions and not planned or existing vacancies

What happens after I have submitted my Kickstart Scheme application?

When you have completed your application it will be reviewed and checked to ensure it meets the requirements and the full criteria of the Kickstart Scheme. After it has gone through the initial checks it is passed to a panel to be considered to ensure fairness and consistency.

Funding from the Kickstart Scheme is only agreed and provided when the appropriate criteria has been met. If as an employer you want to apply for the scheme but are unable to create 30 or more new job placements yourself then you can partner with another organisation, or multiple organisations until you can collectively offer the required number of new job placements.

What Happens After a Kickstart Scheme Application Is Approved?

If your application as an employer has been approved by the scheme you will receive an official grant agreement letter. 

The grant agreement letter details what you as an employer or organisation have agreed you will do and provide in regards to the new placements, as well as the amount of funding you will be given from the scheme. As an employer, you must sign the grant agreement and return it as detailed in the letter before the new job placements can commence.

How Is the Kickstart Scheme funding paid?

When successful candidates have started in their new placements and this has been confirmed the initial set up costs will be paid into your business or organisation’s bank account by the government. HMRC will help the government check people are still employed in the new job placements which acts as a sign off for the monthly payments which are paid in arrears.

You can find out everything you need to know about the Kickstart Scheme and you can start your application for funding here.


How can Hayvenhursts Accountancy Services help you with the Government’s Kickstart Scheme?

Our experienced team at Hayvenhursts can help you with a strategic overview of your business both operationally and financially to check if you could make an application for the Government’s Kickstart Scheme. It doesn’t matter if we already work with you or if you are a new customer we can help. 

At Hayvenhursts we take the time to get to know you and your business and we work alongside you to ensure you are set for success in this changing and challenging world. We provide tailored and personal advice and guidance on the financial aspects of your business plans both short and long term and can help you to identify savings and any funding or support you may be entitled to.

Hayvenhursts Business Planning Services 

Hayvenhursts Business Planning Services is a great way to review your business and see if the Kickstart Scheme is right for you.

  • Agree on long-term strategic goals both personally and for your business
  • Identify where you are now
  • Work on your business so that you can spend less time working in it and focus more on its strategic growth
  • Identify any barriers in your strategy
  • Agree on an operational strategy to overcome any barriers and meet your goals
  • Develop business growth systems
  • Grow a great team of great and talented people (Kickstart Scheme0
  • Monitor and track your results against your goals
  • Manage the money in your business
  • Develop an exit strategy if you want or need one

All of these aspects will support you to understand if your business can grow, expand and benefit from the Government’s Kickstart Scheme.

About Hayvenhursts Accountancy Services

At Hayvenhursts we are experts in all types of accountancy services and can help you and your business at this challenging time. 

We don’t just offer a standard accountancy service but we get to know you and your business and will work alongside you to ensure you have all the accountancy and expert business services that you need now and in the future. 

We use our highly trained and experienced team members and always put together a team of experts who understand your business sector, you and your needs which results in a service which is individual to you. We will work alongside you to identify savings, tax breaks, improved cash flow and business efficiency through our defined and relevant accountancy and business services, establishing savings and opportunities which will improve your business’s short and long term prospects. 

Hayvenhursts Accountancy Services

  • Accounts Preparation
  • Audits
  • Bank Accounts
  • Book-keeping
  • Book-keeping Health Check
  • Business Growth
  • Business Health Check
  • Business Plans
  • Business Valuations
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  • Company Secretarial
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  • VAT Health Check
  • VAT Planning & Disputes
  • VAT Registration
  • VAT Returns

Contact us today and find out how we can help your business now as well as understanding if the Government’s Kickstart Scheme is a sound and viable business option for you.

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