Kickstart Scheme – Government Led Scheme

What is the Scheme? 

The Government Kickstart Scheme provides funding to Employers to create sustainable employment for 16- to 24-year-olds who are on Universal Credit and could be at risk of long-term unemployment.

Employers of all sizes can apply for funding, the funding covers:

  • 100% of the National Minimum Wage (National Living Wage, depending on the age of the participant) for 25 hours per week for a total of 6 months.
  • Any relevant workplace pensions contributions (Automatic enrolment)
  • Associated employer National Insurance Contributions


Employers can spread the job start dates up until 31st December 2021, you will receive funding until 30 June 2022 if any young person starts their job on 31st December 2021.

You will receive £1,500 funding per job, which should be spent on the setup costs and supporting the young person to develop their employability skills.

You can either apply through a Kickstart Gateway provider in your local area or apply online via the Government Website.


Although not being adhered to by all  Employers as we are finding personally, it is important to remember that the placement must not be in place of a vacancy that you would be recruiting for anyway and that as an Employer an offer of employment should not be made at the start of the placement, nor should Placements be over exaggerated by Employers, the scheme rules do stress the importance of this, this is because the scheme is in order to create sustainable employment not to replace roles that would otherwise be available.


Do I need a Contract of Employment or an Agreement in place, when I have confirmed my Kickstart? 


Similar to when you onboard a new Employee, it is important to have the correct documentation in place. As the placement will be funded by the Government and is for a temporary basis the kickstart would be classed as a placement and not an Employee.

Therefore, you should issue your kickstarts with a ‘Placement Agreement’ as opposed to an ‘Employment Contract’.

Once the 6 months period has ended, and you decide that you would like to continue their role within your company, you would offer them a position (job role) that is when you would issue them with a ‘Contract of Employment’.


Why do we need an agreement in place?

Very similar to the reasons behind an Employment Contract, it ensures clarity between both parties and avoids miss communication. By Law, you need to issue your new Employees with Terms and Conditions of their Employment on their first day.

It protects you in case something was to happen, but also your Employee/s/kickstart/s.

Having an Agreement in place also looks professional and shows that you are organised, as an Employer it is important to make a good first impression.


How can we help you?

At HR and You Ltd, we have our own E-commerce platform, which is our Toolkit, this is so handy for Employers, HR Managers, and HR Professionals on the go, it is also really easy to use, you just chose the document you want, pop in your basket and have them sent straight to your inbox ready to use.

Our Kickstarter Document Bundle has all the documents that you will need to onboard your new Kickstarter Placements.

If you purchase any documents from our website before the end of May, you will receive 15% by using discount code Welcome15.

If you are looking for our bespoke range, do not worry, this is still our specialty, we can prepare all your documents for you by issuing you with bespoke documents ready to email out to your new Kickstarters.

Why not contact a member of the HR and You Ltd team today, we are more than happy to help you, call us on 0333 006 9489 or email [email protected].



Sophie Baker

Updated 12 May 2021

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