Guidance

How the Kickstart Scheme works

Find out how the Kickstart Scheme works.

From:
Department for Work and Pensions
Published
13 September 2021
Last updated
19 August 2022 — See all updates

This guidance was withdrawn on

The Kickstart Scheme has closed.

Applies to England, Scotland and Wales

Employer guidance

Kickstart Scheme applications have closed.

Check the deadlines for completing other Kickstart Scheme tasks.

  1. Find out how the Kickstart Scheme works

  2. Manage your funding

If you’re a Kickstart gateway, check the guidance for gateways.

Overview

The Kickstart Scheme provides funding to create new jobs for 16 to 24 year olds on Universal Credit who are at risk of long term unemployment.

Applications closed at midday on 17 December 2021.

For employers who have had a successful application, the funding covers:

Employers can spread the job start dates up until 31 March 2022. You’ll get funding for 6 months once the young person has started their job.

Further funding is available to provide support so that young people on the scheme can get a job in the future.

What you’ll get

£1,500 per job

You’ll get £1,500 funding per job. This should be spent on setup costs and supporting the young person to develop their employability skills.

For example:

  • training and employability support (provided by you, a Kickstart gateway or another provider)
  • IT equipment and software
  • uniform or Personal Protective Equipment

DWP may ask you for your records to show that you’ve spent the funding on setup costs and supporting the young person’s employability.

The funding covers:

Employers can pay a higher wage and for more hours but the funding will not cover this.

What the Kickstart gateway will get

If you applied through a Kickstart gateway, they will get £360 for each job to cover admin costs. They may have to pay VAT on this amount depending on their individual circumstances.

If they do not pay VAT, £60 from this payment will be paid to you by the Kickstart gateway (in addition to the £1,500 funding for setup costs) to further support the young person.

Job criteria

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:

For each job you must help the young person become more employable. This could include:

  • looking for long-term work, including career advice and setting goals
  • support with curriculum vitae (CV) and interview preparations
  • developing their skills in the workplace

If you missed the application deadline or had an unsuccessful application, find out about other employment schemes.

The young person may be able to move to another employment scheme when they’ve finished their 6-month Kickstart Scheme job.

Getting the young people into the jobs

Kickstart Scheme jobs are only available for Universal Credit claimants aged 16 to 24 who are referred to you by DWP.

If your application is successful:

  1. You or your Kickstart gateway will give DWP job descriptions that work coaches at Jobcentre Plus will use to match candidates to the jobs.

  2. You or your Kickstart gateway will receive a notification email each time a young person is referred to the job (‘referrals’).

  3. Referred candidates may choose to apply for the job.

  4. You’ll then be able to interview the candidates who have applied.

  5. You or your Kickstart gateway will tell DWP when the young person has started so we can process the funding. You’ll be told how to do this in the ‘referral’ email.

Check the deadlines for completing these Kickstart Scheme tasks.

You can advertise vacancies yourself, but all jobs must receive an introduction through a DWP work coach to receive full funding.

If a young person leaves the job early

You must email DWP as soon as possible if a young person either:

  • leaves their job before the end of the 6-month period
  • needs to temporarily leave their job (for example for special leave or COVID-19-related restrictions)

The email address is the same one you use to tell DWP about the young person’s start date. You’ll be told how to do this in the ‘referral’ email you get when a work coach refers a young person to your job vacancy.

If a young person leaves their job early, the next scheduled wage payment from DWP will be the last you receive for them.

DWP may be able to extend the funding period if the young person has to temporarily stop working.

How you will get the funding

If you applied online, DWP will send the funding directly to you.

If you applied through a Kickstart gateway, DWP will send the funding to them. The Kickstart gateway will be responsible for sending the funding to you within 5 working days.

Funding schedule

The schedule shows when the funding will be sent to either:

  • you if you applied directly
  • your gateway (they will then need to pass the funding on to you within 5 working days)
Funding type When we usually process the funding When you’ll usually receive the funding
Setup costs After you or your gateway has told DWP the young person has started (do this by 11:59pm on 30 November 2022) Up to 11 working days after it’s been processed
First wage payment 6 weeks after the start date Up to 11 working days after it’s been processed
All other wage payments 30 days after the previous wage payment Up to 11 working days after it’s been processed

Find more detailed information about how you manage the funding.

How to apply

Applications closed at midday on 17 December 2021.

Check if you’re eligible for funding from other employment schemes.

Other employment schemes

Kickstart Scheme is part of the government’s Plan for Jobs. Other employment schemes in this include:

Apprenticeships

You may be able to get funding for any apprentices you employ in England. Find out more about apprenticeships.

Sector-based Work Academy Programme (SWAP)

Jobcentre Plus can support you to create a skilled workforce for your business by offering unemployed people sector-based work academies in England and Scotland.

Traineeships

Employers in England can also help young people by setting up a traineeship. Funding is available for this scheme.

Disability Confident

The Disability Confident scheme provides employers with the knowledge, skills and confidence they need to make the most of the talents disabled people can bring to the workplace.

Employment and recruitment support

Employ someone step by step
Advertise a job
Recruitment advice and support

Updates to this page

Published 13 September 2021
Last updated 19 August 2022 + show all updates

  1. The deadline for telling DWP that a young person has started their job is 30 November 2022.

  2. Updated page because the deadline for telling us that the young person has started their job has now passed.

  3. Updated page to say applications for Kickstart Scheme funding closed at midday on 17 December 2021 and removed information on how to apply.

  4. Added deadlines for completing Kickstart Scheme tasks.

  5. Added information about Kickstart Scheme applications closing on 17 December 2021 and that job start dates have been extended to 31 March 2022.

  6. First published.

Sign up for emails or print this page

Contents