RISHI SUNAK has launched the government's £2-billion Kickstart Scheme to create "hundreds of thousands" of six-month jobs for people aged 16 to 24 on Universal Credit and "deemed to be at risk of long-term unemployment".
According to the chancellor's plan, the government will cover 100 per cent of the national minimum wage for 25 hours a week, and employers' National Insurance contributions and minimum automatic enrolment contributions.
The government will also pay employers £1500 to "set up support and training for people on a Kickstart placement".
The jobs will give young people – who are more likely to have been furloughed – the "opportunity to build their skills... gain experience to improve their chances of finding long-term work", noted a Treasury spokesperson.
"This isn’t just about kickstarting our country’s economy," said Sunak. "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.
"The scheme will open the door to a brighter future for a new generation and ensure the UK bounces back stronger as a country."
The government said it was "stepping in to provide more help", as about 700,000 young people were set to leave education and enter the job market this year, "with a quarter of a million more people aged under 25 claiming unemployment benefits since March".
Therese Coffey, secretary of state for work and pensions, said the UK was "putting young people at the heart of our revival", and urged businesses to "get involved" and "take advantage of the enormous pool of potential out there".
"There is no limit on the number of opportunities we’ll open up through Kickstart and we’ll fund each one for six months as part of Our Plan for Jobs to create, support and protect jobs," she added.
"Young people taking part will receive on-the-job training, skills development and mentoring, as we get them on that first rung of the jobs ladder and on their way to successful careers."
The flagship scheme, however, drew criticism as it required employers to provide a minimum of 30 placements or tie up with companies through "an intermediary" to claim benefits.
Chairman of the Federation of Small Businesses, Mike Cherry, said: "Small firms, who are the largest employers across the business landscape, have long expressed interest in this scheme and will be disappointed to find it harder than expected to take part.
"To put it bluntly, this scheme has not been designed with small businesses front of mind."
Joe Fitzsimons, of the Institute of Directors, said the "30 placement requirement" raised concerns, as it was "not yet entirely clear how the intermediary system will work on the ground".
Shadow chancellor Anneliese Dodds said the scheme "already looks like it lacks that cross-organisational coordination".
A government spokesman, however, said small businesses were an "absolutely key part" of the scheme, and the system was "specifically" designed to meet their needs.
"We will continue to work closely with them and their representative organisations to make sure that every business that wants to employ a Kickstart participant is able to," he added.
