Guidance

Kickstart Scheme for gateways

Kickstart gateways are organisations that help employers get funding to create jobs for 16 to 24 year olds on Universal Credit.

Applies to England, Scotland and Wales

Kickstart gateway guidance

Kickstart Scheme applications close at midday on 17 December 2021.

Check the other deadlines for completing Kickstart Scheme tasks.

  1. Remind yourself how the Kickstart Scheme works

  2. Check your responsibilities as a Kickstart gateway

  3. Request more jobs for employers or add more employers to your grant agreement (grant variation)

  4. Submit the vacancies

  5. Manage the funding

If you’re an employer, check the guidance for employers.

How the scheme works

The Kickstart Scheme provides funding to create new jobs for 16 to 24 year olds on Universal Credit who are at risk of long term unemployment. Employers of all sizes can apply for funding until midday on 17 December 2021 which covers:

Employers can spread the job start dates up until 31 March 2022. They’ll get funding for 6 months once the young person has started their job.

What you’ll get

You’ll get an initial payment of £1,860. This includes:

£360 per job for admin costs

Kickstart gateways will get £360 for each job to contribute towards admin costs. You may have to pay £60 of VAT depending on your individual circumstances. Find out if your organisation needs to register to pay VAT.

If you do not pay VAT

£60 from the £360 payment must be added to the £1,500 paid to the employer to provide the young person with employability support.

£1,500 per job for setup costs and employability support

This will be paid to you and you will need to pay this to the employer (as well as an extra £60 if you do not pay VAT).

This funding should be spent on setup costs and supporting the young person to develop their employability skills. Employers can choose to get someone else to do this for them, such as a Kickstart gateway or a service provider. If they choose to do this they will have to agree how to share the £1,500.

The employer should use this funding for:

  • training and employability support (provided by the employer, Kickstart gateway or another provider)
  • IT equipment and software
  • uniform or Personal Protective Equipment

Kickstart Scheme wages and costs are paid to you, but you will pass this on to the employer. This funding covers:

Employers can pay a higher wage and for more hours, but the funding will not cover this.

Responsibilities of a Kickstart Scheme gateway

As a Kickstart gateway, you act as an intermediary to help an employer get a Kickstart Scheme grant. You may also offer employability support to the young person on the scheme.

You should already have a Kickstart Scheme grant agreement. You can add more employers and jobs to this grant agreement until midday on 17 December 2021.

Essential responsibilities

As a Kickstart gateway with an existing grant agreement with DWP, you need to:

Optional responsibilities

Employability support

You may choose to offer employability support to the young person on behalf of the employer.

This can include:

  • sharing your expertise with the employers to help them onboard and train young people employed through the scheme, for example supporting those from disadvantaged groups or working in certain sectors
  • providing employability support directly to young people employed through the scheme

You can offer employability support to an employer outside of your grant agreement. If you do this, the arrangement will be between you and the employer.

How an employer finds a Kickstart gateway

Employers can find a Kickstart gateway on this list.

Change your details on the Kickstart gateway list

Email kickstart.interest@dwp.gov.uk if:

  • you want your details removed from GOV.UK
  • your contact information has changed

Gateway Plus

A Gateway Plus is a specific type of Kickstart gateway. They can help smaller organisations, such as sole traders and partnerships, apply for a Kickstart Scheme grant.

Alongside the essential responsibilities of a Kickstart gateway, they will also:

  • add the young person to their organisation’s payroll
  • pay the young person’s wages on the small employer’s behalf using the funding from DWP
  • provide the employability support on the small employer’s behalf

Organisations that are approved to act as a Gateway Plus are:

  • Adecco Working Ventures in Partnership with the Federation of Small Businesses
  • REED
  • Manpower Group
  • The Wirral Chamber of Commerce

There are no plans to add any further Kickstart gateways to this list of approved Gateway Plus organisations.

Request more jobs for your employers or add more employers to your grant agreement (grant variation)

You can add employers or jobs to your grant agreement with DWP until midday on 17 December 2021. This is called a ‘grant variation’.

The new jobs or employers will be assessed to make sure they meet the Kickstart Scheme criteria.

You will need to get information about the jobs from the employers.

You can add more employers and jobs online using the application service (until midday on 17 December 2021).

Job criteria

The jobs created with Kickstart Scheme funding must be new jobs. You need to check all of this with the employers you represent.

The jobs must not:

  • replace existing or planned vacancies
  • cause existing employees, apprentices or contractors to lose work or reduce their working hours

The jobs must:

Each job needs to help the young person become more employable. The Kickstart gateway needs to agree with the employer how this is done.

This employability support could include:

  • looking for long-term work, including career advice and setting goals
  • support with CV and interview preparations
  • developing their skills in the workplace

If the employer is not eligible for Kickstart Scheme funding, they can find out about other employment schemes.

The young person may be able to move to another employment scheme when they’ve finished their 6-month Kickstart Scheme job.

What the employer needs to give you

They’ll need to give you:

  • their Companies House reference number, Charity Commission number or Office of the Scottish Charity Regulator number, if they have one
  • their organisation’s address and contact details
  • details of the jobs and their location

DWP performs due diligence checks on all employers using the Cabinet Office Spotlight tool.

Ask them how their jobs are new and created just for the scheme

The jobs must not:

  • replace existing or planned vacancies
  • cause existing employees, apprentices or contractors to lose work or reduce their working hours

The employer needs to tell you:

  • how many employees they have
  • about changes to their workforce in the last 6 months and why (for example redundancies and changes to hours worked by existing staff)
  • the number of people affected by changes to their workforce in the last 6 months
  • about the kinds of roles, functions and average salary of those who were made redundant or who had their hours reduced in the last 6 months
  • if they would be able to create these jobs without Kickstart Scheme funding and what funding source they would use
  • what recruitment they have completed, started or paused in the last 6 months, including how similar these vacancies are or were to the roles they are creating for the Kickstart Scheme
  • if the jobs will be similar to existing or planned roles or the roles previously done by those made redundant or with fewer working hours, why they are using Kickstart Scheme funding to create similar roles
  • if they’ve engaged with any relevant trade unions and any advice the unions have given

How they will support young people to become more employable

They should also tell you:

  • what support will be offered (for example helping young people with writing their CV and preparing for an interview)
  • when they will provide this support (for example halfway through their job or towards the end)
  • how many hours it will take
  • who will provide the support (for example they may already have a pre-existing relationship with training providers or ask you to help with this)
  • how they will monitor this support
  • how the young person can provide feedback during their job and afterwards, and how this will be acted on

We provide funding per job for setup costs and support. If employers get someone else to do some of this, such as a Kickstart gateway, they will have to agree how to share this money.

Submit the employer’s vacancies

If the jobs are successfully added to the grant agreement:

  1. You will provide the details of the vacancies using the job placement template and return it to us by 11:59pm on 31 January 2022.

  2. The vacancies will go live once we’ve approved them.

  3. Work coaches at Jobcentre Plus will refer young people to the vacancies (‘referrals’) until 1 March 2022. A referral is made when we recommend a job to a candidate. This does not guarantee the candidate will put in an application.

  4. You or the employer (depending on your agreement with them) will interview suitable candidates who have applied.

  5. The young person must start the job on or before 31 March 2022.

  6. You should tell us by 11:59pm on 30 April 2022 that the young person has started so we can process the funding.

You or the employer can advertise vacancies, but all jobs must receive an introduction through a DWP work coach to receive full funding.

If a young person leaves the job early

You must email DWP as soon as possible if the young person:

  • leaves their job before the end of the 6-month period
  • needs to temporarily leave their job (for example for special leave or coronavirus-related restrictions)

The email address is the same one you use to tell DWP about the young person’s start date. You’ll be told how to do this in the ‘referral’ email you get when a work coach refers a young person to a job vacancy.

If they leave their job early, DWP will pay the grant until the end of the month that they stopped working.

DWP may be able to extend the funding period if the young person has to temporarily stop working.

Manage the Kickstart Scheme funding

DWP will send the funding to you as the Kickstart gateway. You will be responsible for sending the funding to the employer within 5 working days.

How the funding is calculated for each young person

The calculation is:

  • 25 hours each week at National Minimum Wage or National Living Wage (depending on their age at the end of the job*) multiplied by 26 weeks
  • National Insurance and workplace pension contributions are added to this amount
  • the £1,500 funding for setup costs is then added to this amount

*For example, if a young person starts the job aged 17 and turns 18 before the end of the 26 weeks, the funding will cover National Minimum Wage for 18 year olds from the first day of their job.

£1,860 per job

You should inform DWP as soon as possible or by 11:59pm on 30 April 2022 that the young person has started the job. The £1,500 setup costs and £360 admin costs funding will then be paid. You’ll be told how to do this in the email you receive when a work coach refers a young person to a vacancy.

If the Kickstart gateway or another provider does some of the job setup and employability support, the employer can use the £1,500 funding to cover this.

Every 30 days we use information from HMRC to check that the young person is being paid through Pay As You Earn (PAYE).

We’ll then send the funding for the wages and related costs to cover the last 30 days of employment.

The employer can pay a higher wage and for more hours but the funding will not cover this.

Each time you’ll receive a remittance advice explaining what you’ve got. You’ll be able to identify the young person in the remittance advice by their ‘Introduction ID’. We’ll send the Introduction ID in an email when the young person is referred by a work coach to the job.

Funding schedule

The schedule shows when the funding will be sent to you. You then need to send it to the employer within 5 working days.

Funding type When we usually process the funding When you’ll usually receive the funding
Setup costs After you or the employer has told DWP the young person has started (do this by 11:59pm on 30 April 2022) Up to 11 working days after it’s been processed
First wage payment 6 weeks after the start date Up to 11 working days after it’s been processed
All other wage payments 30 days after the previous wage payment Up to 11 working days after it’s been processed

Other employment schemes

Kickstart Scheme is part of the government’s Plan for Jobs. Other employment schemes in this include:

Apprenticeships

You may be able to get funding for any apprentices you employ in England. Find out more about apprenticeships.

Sector-based Work Academy Programme (SWAP)

Jobcentre Plus can support you to create a skilled workforce for your business by offering unemployed people sector-based work academies in England and Scotland.

Traineeships

Employers in England can also help young people by setting up a traineeship. Funding is available for this scheme.

Further support and help

Get in touch with your local or national Kickstart Scheme contact if you need help with the application process.

You can also read top tips for making a Kickstart Scheme application and guidance for employers on choosing a Kickstart gateway.

Disability Confident

The Disability Confident scheme provides employers with the knowledge, skills and confidence they need to make the most of the talents disabled people can bring to the workplace.

Coronavirus support

Find coronavirus financial support for your business
Business support (COVID-19)

Employment and recruitment support

Employ someone step by step
Advertise a job
Recruitment advice and support

Published 13 September 2021
Last updated 19 November 2021 + show all updates
  1. Added deadlines for completing Kickstart Scheme tasks.

  2. Added information about Kickstart Scheme applications closing on 17 December 2021 and that job start dates have been extended to 31 March 2022.

  3. First published.