‘Kickstart’ jobs scheme: What has the Chancellor promised for young people?

Recent reports highlight that one third of all working adults aged under-25 have suffered a loss of wages or working hours.

Analysis by the Resolution Foundation showed that 24 per cent of this group have been furloughed as part of the Coronavirus Job Retention Scheme while nine per cent had lost their job entirely and two per cent saw their hours or wages cut.

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This is compared with just over 20 per cent of all adults aged 18 to 65, the report shows, 15 per cent of whom have been furloughed.

Delivering his summer statement in the House of Commons today, Sunak heavily focussed on creating employment, training and apprenticeship opportunities for young people:

‘Kickstart’ jobs scheme

Sunak announced a £2bn scheme to create employment opportunities for 16- to 24-year-olds claiming Universal Credit and at risk of long-term investment.

The scheme will see the government fund the wages of employees, up to 100 per cent of National Minimum Wage, for 25-hours a week for six months. 

Employers will be given the opportunity to top-up wages and there will be no cap on the number of placements made available, Sunak said.

He added: “The Kickstart scheme will directly pay employers to create new jobs for any 16 to 24-year-old at risk of long-term unemployment.

“These will be decent jobs – with a minimum of 25 hours per week paid at least the National Minimum Wage.

“I urge every employer big or small to hire as many kickstarters as possible.”

Companies are urged to apply for the scheme as soon as possible with plans in place for the first so-called “Kickstarters” to take up roles in the autumn.

Traineeships

Sunak also announced plans to pay companies £1,000 to take on trainees aged 16 to 24.

He said: “Traineeships are a proven scheme to get young people ready for work.”

Companies benefitting from trainee grants must provide work experience placements, education including English and maths and work preparation for a period of six weeks to six months.

A further £100m was announced to create places on Level 2 and 3 training courses with a £17m investment planned to “triple” the number of available places in sector-based work academies in 2020/21.

Apprenticeships

Companies are set to be paid £2,000 for every young apprentice aged under-25 they hire. This will be on top of the £1,500 paid for hiring young apprentices with an education, health and care plan, Sunak said.

The Chancellor encouraged businesses “small and large” to “take advantage” of the offer over the next six months.

Careers advice

Sunak said “the evidence says careers advice works” and vowed to invest £32m in hiring more advisers for the National Careers Service.

The move will “provide bespoke advice and careers guidance for over a quarter of a million more people,” Sunak said.

He also vowed to invest nearly £900m to double the number of work coaches to 27,000”.

Job retention

As the furlough scheme winds down in October, Sunak promised to pay £1,000 for every employee kept in their jobs until 2021.

The Chancellor described the scheme as a “lifeline for millions” but said it “cannot and will not go forever”.

He said in order for employers to benefit from the payout, staff must earn at least £520 a month, on average between November and January. 

“If you stand by your workers we will stand by you,” Sunak added.