To help the economic recovery from the Coronavirus pandemic, Chancellor Rishi Sunak has announced a new Kickstart Scheme, which launches today. The Kickstart Scheme is specifically aimed at reducing youth unemployment.

The scheme is backed by a £2billion fund and will pay for six-month work placements (covering overheads and wages) for 16 to 24-year-olds at risk of long-term unemployment. It is aimed at those who are on Universal Credit, potentially school leavers or those who have had job offers withdrawn.

Companies that take part in the scheme will have to prove that the jobs they are making available to applicants are new, and are not replacing any already existing jobs.

The funding available for each job will cover 100% of the relevant National Minimum Wage for 25 hours a week, plus associated employer National Insurance contributions and employer minimum automatic enrollment contributions.

The Government will also pay employers £1,500 per job placement to cover setup costs, support and training.

In a separate announcement an additional £32 million has been made available to the National Careers Service to fund additional recruitment and career advisers, as well as £17 million for work academies in England to fund work-based placements.