The pros and cons of the government's new Kickstart jobs scheme

The government’s new work placement scheme, which provides funding for employers to offer work placements to young people, is appealing. But the red tape could put off some small businesses.

Engineer and apprentice © Getty Images/iStockphoto
Offering work placements could give small firms a big boost
(Image credit: © Getty Images/iStockphoto)

The headlines of the Treasury’s new Kickstart jobs scheme are attractive. The state is providing £2bn of funding for employers prepared to offer work placements of up to six months to 16 to 24-year-olds currently on universal credit.

The money will cover the cost of paying each participant’s wages – at the national minimum wage – for 25 hours a week, plus associated national insurance and pension costs. There is also £1,500 per job available for set-up costs, support and training.

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David Prosser
Business Columnist

David Prosser is a regular MoneyWeek columnist, writing on small business and entrepreneurship, as well as pensions and other forms of tax-efficient savings and investments. David has been a financial journalist for almost 30 years, specialising initially in personal finance, and then in broader business coverage. He has worked for national newspaper groups including The Financial Times, The Guardian and Observer, Express Newspapers and, most recently, The Independent, where he served for more than three years as business editor.