Certain doubts cloud launch of Rishi Sunak’s Kickstart jobs initiative

The new £2bn Kickstart scheme is set to create thousands of new jobs for young people
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Joanna Hodgson2 September 2020

The Chancellor’s flagship initiative to get young people into work launched on Wednesday, amid worries companies would struggle to take on new staff due to the Covid crisis.

Rishi Sunak’s Kickstart Scheme aims to create thousands of jobs. Under the plan, employers can offer people aged 16-24 who are claiming Universal Credit a six-month work placement with the Government paying 100% of the national minimum wage, National Insurance and pension contribution costs for 25 hours a week’s work.

Employers are able to top up the wages while Government will pay £1500 for set-up and training costs under the scheme, initially open until December 2021.

Sunak said: “This isn’t just about kickstarting our country’s economy – it is an opportunity to kickstart the careers of thousands of young people who could otherwise be left behind as a result of the pandemic.

Tesco, the UK’s biggest retailer, said that 1000 staff would be hired under the programme. The grocer is already hiring 16,000 new employees to handle the surge in online shopping.

Stewart Baseley, executive chairman of the Home Builders Federation, said: “House builders are committed to increasing industry capacity and skills such that the industry can continue to increase output. Government support to help get more young people into work is extremely welcome and we look forward to working with officials to ensure the scheme delivers more, skilled house building staff."

Make UK, which represents the manufacturing industry, said that the scheme was a “worthy initiative but tricky to implement”. Policy director Verity Davidge said that, with the industry in crisis amid the Covid recession, “we may see a slow sign-up to this new employment initiative”.

Davidge said: “Manufacturers are also pulling back on their existing education and training programmes with work experience, internships and site visits taking a hit, owing to social distancing measures, as well as financial, people and time pressures. Offering a six-month placement will be seen as a big ask, and possibly an ask too far for many firms.”

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