Kickstart Scheme

Kickstart Scheme
Name	Kickstart Scheme
Established	2020
Type	Employment initiative
Country	United Kingdom
Administered by	Department for Work and Pensions
Budget	variable
Status	phased

Kickstart Scheme The Kickstart Scheme is a United Kingdom-wide employment initiative introduced in 2020 to create work placements for young people. It sought to link employers, local authorities, and delivery partners to provide time-limited work experience and wage subsidies for 16–24-year-olds. The scheme intersected with numerous national programs and local strategies, engaging corporate, third-sector, and public bodies across the UK.

Background and Purpose

The initiative was announced amid responses to the COVID-19 pandemic and the broader economic shock that affected the Office for National Statistics, Prime Minister of the United Kingdom, Chancellor of the Exchequer, and agencies such as Department for Work and Pensions, HM Treasury, and Cabinet Office. It aimed to reduce youth unemployment similar in intent to past interventions like New Deal (United Kingdom) and to complement measures involving Jobcentre Plus and National Living Wage policies. Policymakers referenced international precedents including programs in the United States Department of Labor, Bundesagentur für Arbeit, and initiatives under the European Commission such as the Youth Guarantee.

Eligibility and Application Process

Eligible participants were young people aged 16–24 claiming benefits administered by Department for Work and Pensions and registered via Jobcentre Plus or local authorities. Employers seeking funding applied through government portals and coordinated with organisations like Local Enterprise Partnerships, City of London Corporation, and delivery partners including charities such as Prince's Trust, The Salvation Army, and British Red Cross. The application process required alignment with standards comparable to those upheld by ACAS, Chartered Institute of Personnel and Development, and referenced expectations seen in programmes by National Health Service trusts and education providers like Ofsted-regulated apprenticeships.

Funding and Administration

Grants covered wages at National Minimum Wage rates and employer National Insurance and pension contributions for six-month placements, allocated via schemes administered by Department for Work and Pensions and overseen by HM Treasury. Delivery involved intermediaries including local authorities such as Greater Manchester Combined Authority, regional bodies like Scotland Office, and devolved administrations including Welsh Government and Northern Ireland Executive. Employers ranged from multinational firms like Tesco and Sainsbury's to public institutions such as NHS England, Local Authorities (United Kingdom), and third-sector organisations like Trussell Trust.

Impact and Outcomes

Evaluations measured placement starts, progression into sustained employment, and skills acquisition using data from Office for National Statistics, labour market metrics tracked by Resolution Foundation, and research by think tanks including Institute for Fiscal Studies, IPPR, and Resolution Foundation. Early reports indicated mixed transitions to permanent roles, with successful cases highlighted by employers such as BT Group, Rolls-Royce Holdings, and John Lewis Partnership. Academic studies from universities including University of Oxford, London School of Economics, University of Glasgow, and University of Manchester examined employment trajectories and cohort analyses.

Criticism and Controversies

Critics including commentators at The Guardian, The Times, Financial Times, and organisations such as Trades Union Congress and Citizens Advice argued the programme risked displacing permanent vacancies and enabling subsidy-driven hiring by large firms like Amazon (company) and Walmart through ASDA. Concerns referenced accountability issues similar to debates around Work Programme and Universal Credit. Parliamentary scrutiny by the House of Commons Public Accounts Committee and debates in the House of Commons and House of Lords raised questions about value for money and monitoring, with comparisons drawn to failures alleged in past schemes like Pathways to Work.

Regional and Sector Variations

Implementation varied across regions such as London, Scotland, Wales, Northern Ireland, North East England, and West Midlands. Sector uptake differed: retail and hospitality employers including Compass Group and Mitie participated alongside healthcare providers like NHS Scotland and arts organisations such as Arts Council England. Local enterprise partnerships including LEP-led consortia and combined authorities like Greater Manchester Combined Authority tailored approaches to sectors emphasised in regional strategies, such as manufacturing clusters around Sheffield and technology hubs in Cambridge.

Legacy and Evaluation Studies

Long-term assessment incorporated longitudinal datasets from Department for Work and Pensions, administrative records used by researchers at Institute for Employment Studies, National Institute of Economic and Social Research, and academic centres like Centre for Economic Performance. Comparative analyses referenced international counterparts including the Youth Employment Service (YES) and components of European Social Fund initiatives. Subsequent policy discussions in the House of Commons Library and publications by think tanks including Policy Exchange and Centre for Cities considered how lessons from the scheme could inform future youth labour interventions and active labour market policy.

Category:Employment programmes in the United Kingdom