The government’s Kickstart job creation scheme for young people should be extended by six months to June next year to cope with demand and delays, CBI president Lord Bilimoria has said.
Although the Åí2bn scheme to help companies employ school leavers has proved popular, lockdown had put many businesses’ plans on hold. Of a total of 150,000 approved placements, only 5,000 have started, said Bilimoria.
The scheme, part of the response to the Covid crisis, provides funding to employers to create job placements for 16-24 year-olds on Universal Credit who are at risk of long-term employment. It covers 100% of the minimum wage and employers’ National Insurance contributions for 25 hours a week for six months. Placements can start up to the end of December this year. Companies can apply direct or through Kickstart gateways set up by organisations such as Make UK, which has placed 400 people. “The Kickstart programme is a fantastic example of partnership between business, the government and education. But it’s not been perfect from day one,” said Bilimoria. An initial requirement to create 30 jobs was removed after business organisations pointed out that this excluded small and medium companies.
He added: “Countless employers have signed up with more than 150,000 placements approved. But of those 150,000 fewer than 5,000 are actually up and running – less than 4%.” This was partly because of the effects of lockdown. “Some sectors, like retail or hospitality, can’t get placements started until they re-open. Yet many others are struggling with the process,” said Bilimoria. “For many businesses it’s taking too long to get a response from the government, too long to match placements with candidates, and it’s unclear why some applications have been rejected. We need to do things quicker, with more transparency to make these opportunities a reality.”
Though there had been “a vote of confidence in the scheme from firms” there was also “a real sense of worry for employers and school leavers as opportunities get lost in delays and red tape. With the scheme due to end in less than nine months employers simply don’t have enough time to make the most of it.” Extending the deadline “would guarantee time to process the huge demand for placements, and ensure as many young people benefit from the scheme as possible,” he said.