The new Kickstarter scheme unveiled by Chancellor Rishi Sunak during the summer statement aims to help the employment of workers under 16-24 years old by funding employers with a £2 billion budget.
The Kickstarter scheme – the program benefits young workers who are currently under the Universal Credit program, which is a government-funded initiative that helps low-income or unemployed workers by giving them monthly payment to cover their living costs.
There are over 3.2 million UK employees supported by the Universal Credit scheme, and a large portion of it are young people at risk of long-term unemployment.
This job-creation scheme provides the younger generation with a chance to build their career despite the current pandemic.
How Does Kickstarter Scheme work?
In the hopes of creating quality jobs for younger people (16-24), Sunak urges businesses to join the campaign when the application opens next month.
The Kickstarter Scheme is set to finance employers with an initial payment of £2 billion to cover the complete minimum wage of workers for 25 hours a week.
The scheme will run for six months, which is up until December 2020. Aside from wages, the budget given to companies will also cover overhead costs.
Workers should be compensated for their hourly work at the National Minimum Wage. Specifications are as follows:
- £4.55 for those under 18 years of age
- £6.45 for 18-20
- £8.20 for 21-24 years old
Employers may opt to top these salaries up if they see fit. They are also responsible for providing training and support to Kickstarter scheme employees to help them secure permanent jobs.
Any UK enterprise giving decent jobs may enter the program, provided that the jobs to be assigned are in addition to existing roles within the company. Other criteria for company funding eligibility will be available in the coming weeks.
There is no cap on place availability, so every kind of business is encouraged to join—big or small, national or local. It covers England, Scotland, and Wales, with Northern Ireland soon to follow after additional funding is given.
For more information on Kickstarter Scheme Application and Support Guidance visit on this resource (recent update was of September 2) https://www.gov.uk/government/collections/kickstart-scheme
How Kickstarter Scheme Impact Businesses?
Young workers and apprenticeship organizations welcomed the good news of the job creation scheme, especially in the hospitality sector.
The program is set to boost businesses after a long winding quarantine period, as well as help employees get to their feet in the process.
After three months of lockdown, enterprises need this kind of support to preserve the industry and survive the pandemic.
However, some training groups want to tread with caution in navigating the Kickstarter scheme. The government, employers, and training organizations should work together to ensure that apprenticeships would progress into long-term employment.
The scheme must not only provide jobs to young people for six months; it should have an endgame of eventually leading to secure, full employment, so as not to be back at square one again.
Creating jobs for the most vulnerable societal class is a massive step towards improving the country’s economy, which is the aim of the Kickstarter scheme.
Allocating funds for apprenticeship and traineeship programs, Kickstarter scheme, and job retention bonus all lead to a single goal—long-term sustainable work for a sustainable future.