Kickstart Scheme pay rates unveiled – how much employees will get depends on one factor | Personal Finance | Finance


The Kickstart Scheme was among a number of packages announced by Rishi Sunak during his summer statement in the House of Commons on Wednesday. The Chancellor explained it see the government introduce a £2billion fund intended to create hundreds of thousands of “high quality” six-month work placements.

The roles will be aimed at 16 to 24-year-olds who are on Universal Credit and deemed to be at risk of long-term unemployment.

During his speech, Mr Sunak said: “A new programme to give hundreds of thousands of young people, in every region and nation of Britain, the best possible chance of getting on and getting a job.

“The Kickstart Scheme will directly pay employers to create new jobs for any 16 to 24-year-old at risk of long-term unemployment.

“These will be new jobs – with the funding conditional on the firm proving these jobs are additional.

READ MORE: WASPI fears as Rishi Sunak announces new kickstart scheme amid state pension age changes

“These will be decent jobs – with a minimum of 25 hours per week paid at least the National Minimum Wage.

“And they will be good quality jobs – with employers providing Kickstarters with training and support to find a permanent job.

“If employers meet these conditions, we will pay young people’s wages for six months, plus an amount to cover overheads.

“That means, for a 24-year-old, the grant will be around £6,500.”


Following the announcement, HM Treasury released further information in the policy paper titled A Plan for Jobs 2020.

It explains that under the Kickstart Scheme, funding will be available for each job to cover 100 percent of the relevant National Minimum Wage (NMW) for 15 hours per week.

Additionally, it will cover the associated employer National Insurance contributions and employer minimum automatic enrolment contributions.

There are a number of different National Minimum Wage rates.

Meanwhile, those who are aged 25 and older can get the National Living Wage – which currently has an hourly rate of £8.72.

Apprentices get apprentice rate if they’re under the age of 19, or 19 or older and in the first year of their apprenticeship.

Should the apprentice be both 19 or over and have completed this first year of their apprenticeship, they can get the minimum wage for their age.

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