Guidance

061/21 – European Social Fund Managing Authority – confirmation of the position regarding ESF eligibility for people employed in Kickstart funded vacancies

Updated 5 December 2024

Date Issued	17 March 2021
Review Date	16 March 2022

1. Who should read

All ESF funded projects, CFOs and IBs

2. Purpose

To inform projects that individuals employed in Kickstart funded vacancies are eligible for ESF support under the specific circumstances set out in this Action Note. This is a change from the ESF Managing Authority’s previous position.

3. Background

The Kickstart Scheme has been created to address the predicted impact on youth unemployment due to the COVID-19 pandemic.

Kickstart Scheme vacancies are available to Universal Credit claimants aged 16 to 24 who are considered at risk of long term unemployment by their Work Coach. All Kickstart participants receive support to maximise the potential of the Kickstart opportunity and to increase their chances of securing long term sustainable employment.

DWP Work Coaches can identify claimants and invite them to apply for a Kickstart Scheme vacancy. ESF projects cannot refer ESF participants to apply for a Kickstart Scheme vacancy, as they will not have direct access to them.

Individuals successful in their application will be employed. The Kickstart grant condition requires the employment contract to be for at least 25 hours a week and for pay to be at least at the relevant National Minimum Wage rate. A further grant condition is the provision of support aimed at enhancing employability. (This has been factored in to the value of the grant.)

Up to the point of publishing this Action Note, the ESF policy position was that individuals employed through Kickstart were not eligible to receive ESF support. In response to feedback from stakeholders and delivery partners, the ESF Managing Authority has reconsidered the policy position and has identified an approach where an individual employed through Kickstart can be eligible to receive ESF support.

The ESF Managing Authority recognises that individuals’ needs are wide and varied and some may need more intensive support than others. For these individuals, whose support needs have been identified as being above and beyond the support provided by the employer, ESF funded provision can be used to fund that additional support as part of the overall package of support provided to the individual.

It must be clear what these additional needs are and there must be no duplication of the support provided through the Kickstart grant.

4. Action

From the 17 March 2021 ESF funded provision can be used to fund additional wraparound support for Kickstart participants as part of the overall package of support provided to the individual where the circumstances meet the purpose and intent of the ESF Operational Programme.

ESF funding must only be used to deliver support in addition to what is provided through the grant paid to the employer. It cannot be used to duplicate what is already being provided or replace existing planned support. The additional ESF support package must be agreed between the ESF project and the Kickstart employer and documented. The document must set out clearly the specific support needs that will be addressed by the employer and the support needs that will be addressed through ESF provision. The document must demonstrate that those support needs are in addition to those provided by the employer.

It is for the ESF project to demonstrate that the support they deliver to Kickstart participants is in direct response to support needs which are over and above those being addressed by the employer through the Kickstart support grant.

The ESF project is responsible for ensuring only eligible expenditure directly associated with the additional wraparound support is included in claims to the ESF Managing Authority.

All documentation must be retained by the ESF project for verification and audit purposes.

5. Contact

If you have any questions about this Action Note please contact esf.2014-2020@dwp.gov.uk.