October 07, 2020
As businesses struggled to find cover the government has been persistent in trying to ensure that no one feels left out in their spate to ease the burden that has fallen so ominously due to the coronavirus pandemic. The Kickstart Scheme so close on the heels of furlough is another scheme that is targeting employment and specifically employees as its objective. Just as furlough is being shown out, the wage subsidy scheme is being ushered in from the 1st of November 2020. The Kickstart Scheme works on providing funding to various employers so as to the creation of job placements for individuals between 16 and 24.
With the radical decline in the job market the scheme is focuses on building a job window for a 6 months job placement targeting those young people that are currently depending on Universal Credit. This is to avoid, the risk that comes in with long term lack of employment. Small businesses will stand to profit here as the government plans to pay for 6 months’ worth of wages hence, this is an important consideration to make while working on small business accounting.
Plan for Jobs
From the protection of jobs through the Coronavirus Job Retention Scheme and now to the creation of the same. The government seems to be keeping a close eye on the job market to ensure that things don’t suddenly turn bleak. The funding in the case of the Kickstart Scheme is made available through the ‘Plan for Jobs’. Those employed under this scheme are to get paid as per the relevant minimum wage criterion for working 25 hours a week. Also, along with wages they are to get the benefit of the employer’s national insurance contributions as well as employer’s work place pension contributions where applicable.
Reducing the glamour of benefits
Welfare benefits are merely a cushion in a hard time and thus, the same applies to Universal Credit. However, with these young people earning an income their dependency on the former will reduce. Thus, while the government invests it also saves. Plus, having people career ready is a much better investment than their relying on the safety net of their national insurance record. This will also aid businesses in employing new staff where needed and so the right application of such government provided or rather state aid falls under the umbrella of proper business accounting.
How does one apply?
There is a cap on the amount you can receive of course, with it set at £1,500. This includes the costs of training as well as uniforms. The scheme isn’t just to benefit employers as it is perceived to also provide the younger generation with a practical skillset through actual hands on experience. Employers can set themselves up for the scheme by going to the government site or you can simply ask your accountant to help you with the same. Also, there is no dearth to the number of roles or applications. However, Jobcentre Plus will zero in on the proper candidates to fill in the posts.
Kickstart new careers amidst a global pandemic
The government has already considered an investment of £2 billion for the same as the long-term gains of making the youth self-reliant is but obvious. Also, when factoring in the accounting for startups one has to admit this will make things smoother for employers. On an average per job the cost to the state would be around £6,500. While Jobcentres might send in the applicants the final decision rests with the company as the candidates will go through the regular interview process. Thus, this is not a job guarantee, it is an opportunity.