In our recent article about the effect Brexit will have on the UK labour markets after 31st December 2020, we recommended Employers consider ways in which they could avoid skills shortages by adopting alternative recruitment strategies. On 8th July 2020, the “Kickstart Jobs Scheme”, was unveiled by the Chancellor, Rishi Sunak, as ‘Step 3’ of the economic recovery from the coronavirus pandemic and the damage it has caused on the economy.
The Kickstart scheme could be the answer to some expected skills gaps from January 2021 and will commence in the autumn with a programme that will encourage employers to take on young people to give them “the opportunity to build their skills in the workplace, and to gain experience that will improve their chances of going on to find long-term sustainable work”. This in turn could help those businesses who are facing a skills shortage after Brexit in January with the opportunity to train up replacement staff.
For each “kickstarter” job, the government will cover the cost of 25 hours’ work a week at the National Minimum Wage – £4.55 for under 18s, £6.45 for 18 to 20-year-olds, and £8.20 for 21 to 24-year-olds. Employers will be able to top up that payment if they wish.
The scheme will open for applications in August and will run until December 2021 – with the option of being extended.
Remember the new laws that were introduced earlier this year as part of the Good Work Plan, mean that you must present a contract of employment to any new employee before they start, or at least on their very first day of employment.
Consultant Director – Employment Law