Kickstart Scheme

Andy Carter Excerpts

Thursday 3rd September 2020 Commons Chamber

[Dr Coffey]

I thank the hon. Gentleman for his sort of support for the kickstart scheme. I really think that across the House we should see this as an opportunity for us all to help young people in our constituencies. On the principles of the future jobs fund, we have actually taken some learnings from that, on where it worked and where it did not. He referred to the fact that it had taken so long to get here, but we had the pandemic in March and this approach was announced in July. We have worked tirelessly on it and, as I say, I pay tribute to my civil servants in that regard. This is actually quite a contrast to the financial crisis of the late noughties, because I think I am right in saying that that placement scheme did not get going until October 2009. It was a long time before that happened, so we have worked at pace.

There are other elements from last time that we have learned from. Hardly any private sector businesses were involved, and the criteria were so stringent in different ways that, frankly, that scheme was very limited. I know that it is not about setting targets for these things, but the consequence of that was that the future jobs fund achieved just over 100,000 placements, although the ambition had been higher. So we have simplified the criteria.

The hon. Gentleman points to the threshold for small employers to get involved, but it is exactly the same threshold that applied to the future jobs fund, where businesses could only get involved by going through their local councils. We are opening this up in a different way, and I think we will start to see local enterprise partnerships and chambers of commerce getting involved as intermediary bodies, as well as councils. There is also a lot of support for this from many of the mayoral combined authorities.

The hon. Gentleman mentioned the number of hours per week. The reason for this is that this is not just about rebates like the coronavirus furlough scheme. Young people will be expected, with their employers, to do more to prepare themselves for the world of work, and that may include work search in additional time. So that is another reason why intermediaries are going to be a key element in helping some of our small businesses to provide these placements, as well as the wraparound support that will be required. On the other elements to which he referred, I know that he has tabled several written questions and he will be answered.

[Andy Carter (Warrington South) (Con)]

I thank the Secretary of State for a very helpful update. By way of some instant feedback, I found in my inbox this morning many questions from employers in Warrington South who are already keen to be part of the kickstart scheme. Can my right hon. Friend confirm that the Government will pay 100% of the cost of wages, national insurance and pension schemes, so there is no reason why businesses in Warrington South cannot sign up and create new jobs for young people?

[Dr Coffey]

My hon. Friend is right: we are paying 100% for 25 hours a week, which is the minimum hours that we would expect people to be working. Of course, if employers want to pay more and do more, they can. This is not a limitation on the ambitions of organisations or the relevant contributions. I am pleased to say that people can go on gov.uk/kickstart today and see the online guidance. If they are a small business and cannot offer 30 jobs over the next 18 months, they can go straight to a contact in the DWP, and we will do that linking for them. More than 6,000 people had already started an application yesterday. That is very encouraging, and I am excited about it.