Supporting younger people into work

It has been universally acknowledged that the COVID-19 pandemic has had the biggest impact on employment prospects for younger people than for any other age group. Research undertaken by The Prince’s Trust, supported by HSBC, has found that, while some areas of the economy might be starting on the road to recovery, young workers are under-represented in these sectors, and the industries that typically employ young people will be hardest hit in the long term.

Increasing the incentives for hiring apprentices is one way the government is encouraging employers to recruit young people, something I wrote about in a previous blog.  Employers receive £3,000 for new apprentices of any age who join their organisation between 1 April 2021 and 30 September 2021. This is in addition to the £1,000 employers already receive for hiring an apprentice:

• Aged 16 to 18 years old
• Under 25 with an education, health, and care plan or who has been in the care of their local authority

The Kickstart Scheme is another government initiative, announced by the Chancellor last Summer, offering hundreds of thousands of job opportunities over the next two years.

What is Kickstart?

Kickstart provides funding to create new job placements for 16-24 year olds on Universal Credit who are at risk of long term unemployment. Employers of all sizes can apply for funding which covers:

• 100% of the National Minimum Wage (or the National Living Wage depending on the age of the participant) for 25 hours per week for a total of 6 months
• Associated employer National Insurance contributions
• Employer minimum automatic enrolment contributions

Employers can spread the start date of the job placements up until the end of December 2021. And in a change to previous rules, employers no longer need a minimum of 30 job placements to apply directly for a grant.

However, the jobs created with Kickstart Scheme funding must be new jobs. They must not:

• Replace existing or planned vacancies
• Cause existing employees, apprentices or contractors to lose work or reduce their working hours

The jobs must:

• Be a minimum of 25 hours per week, for 6 months
• Pay at least the National Minimum Wage or the National Living Wage for the employee’s age group
• Only require basic training

Click here for more information about becoming or hiring an apprentice

Click here for more information about Kickstart