Submitted by Sestini & Co
| on Sun, 10/04/2020 - 15:56 | In Running a company
The coronavirus Covid-19 pandemic has had a devastating effect on the health and finances of many people, not least younger people who were already struggling to find employment before the pandemic.
To help youngsters, the government recently announced the launch of its Kickstart Scheme. This will create new six-month job placements for young people who are currently on Universal Credit and at risk of long-term unemployment.
This was initially hinted at back in July 2020 in the Summer Statement when the Chancellor, Rishi Sunak, promised to help young people on Universal Credit who had lost jobs and opportunities because of coronavirus back to work.
The scheme, likely to be available from November 2020 and to run until December 2021, is designed to create thousands of new jobs for young people around the country in a range of different sectors. On offer will be six-month placements for those aged between 16-24.
However, the scheme has not been without its detractors, as reported in the Financial Times, who claim it disadvantages “smaller businesses because companies taking on fewer than 30 new young workers are prevented from applying directly for funds”. Businesses recruiting more than 30 people can submit a bid directly online through the main Kickstart page. Large employers such as Tesco have already signed up.
If businesses hire fewer than 30 people they have to group together with other SMEs to create a batch of 30 roles. These could be local authorities, trade bodies, Chambers of Commerce and charities.
How employers can participate
The government have agreed to subsidise 100% of the age-relevant national living wage, National Insurance and pension contributions provided young people aged 16-24 are given quality positions with a minimum of 25 hours a week.
Employers will also receive £1500 per placement, to set up support and training for people on a Kickstart placement, and will help pay for uniforms and other set up costs.
Organisations will be required to provide placements which will help participants develop their skills and experience, and to support them with advice and guidance around long-term goals and career plans.
If you’re an employer who’s interested in participating in the scheme you can find further information on the government’s website. If eligible, you’ll receive funding for 100% of the national minimum wage for 25 hours a week, along with National Insurance contributions and employer minimum auto-enrolment pension contributions.
How we can help
If you are an employer looking to create jobs placements for young people but aren’t sure about the financial implications, we may be able to help so why not talk to us.
Here at Sestini & Co we dedicate considerable time and expertise to keeping up with changing case law and ensuring we know the tax rules.
If you need help with any tax-related issues and would like to speak to us, give us a call on 01761 241 861 or email us today.
We will be pleased to arrange an online consultation or telephone call.