Apprenticeships, Conservative Party Conference, Kickstart

Sunak extends apprenticeship employer incentives and Kickstart scheme

Apprentice incentives will run until end of January while Kickstart will go until end of March

Apprentice incentives will run until end of January while Kickstart will go until end of March

traineeships


The chancellor Rishi Sunak has extended cash incentives for hiring new apprentices as well as his flagship Kickstart scheme as part of a £500 million jobs support package.

Bonuses of £3,000 for every apprentice a business hires ended in September, but Sunak has prolonged the scheme by four months until the end of January.

And Kickstart – which subsidises job placements for young people on universal credit – was due to end in December but will now be extended by three months to March 2022.

In his speech for the Conservative Party Conference today, Sunak said he is “ready to double-down” on his promise to “do whatever it takes” to recover from the Covid-19 pandemic.

“The job is not done yet and I want to make sure our economy is fit for the future and that means providing the support and skills people need to get into work and get on in life.”

The extensions to his Plan for Jobs schemes, first announced in July 2020, comes shortly after figures revealed how they have struggled to reach the numbers first hoped.

A progress report for the Plan for Jobs was published last month and revealed that “more than 85,000 apprentices have been newly hired under our new incentive payments”.

Funding for around 100,000 new starts was set aside in the Plan for Jobs.

The cash incentives were first introduced by Sunak in August 2020 and offered firms £2,000 to take on apprentices aged 16 to 24, while those that employ new apprentices aged 25 and over are paid £1,500. They were increased to £3,000 for all apprentices in February.

And only 76,900 young people have actually started Kickstart jobs, according to latest figures, with 196,300 roles in total made available to date.

The scheme launched in September last year with £2 billion set aside to create 250,000 jobs by the end of 2021.

An FE Week investigation, published on Friday, revealed how businesses had found the scheme overly “complex, bureaucratic and slow” to use.

The government said as part of its Kickstart extension, it will continue to accept applications from employers and gateway providers until 17 December 2021.

Specific funding for each measure extended by the chancellor today will be confirmed at the Spending Review on 27 October.



More from this theme

apprenticeship levy, Apprenticeships, Colleges, Ofsted, Pay

AELP conference highlights: Leaders talk funding rate review, the levy and staffing crisis

Ofsted, AoC, IfATE and CBI among speakers at AELP conference

Jason Noble
Apprenticeships

Lifetime Training’s grade 3 Ofsted report published

Inspectors criticise focus on financial performance and starts over quality

Billy Camden
Apprenticeships, Ofsted

Ofsted to hit England’s largest apprenticeship provider with grade 3

Quality concerns found at Lifetime Training, which delivers to big-name employers and the civil service

Billy Camden
Apprenticeships, Higher education

New ‘method’ to quality assuring higher and degree-level apprenticeships launched

It is part of the second phase of reforms to how EQA works for end-point assessment

Billy Camden
Apprenticeships

Burghart sets ‘ambitious’ apprentice achievement rate target and announces feedback tool drop-outs

But AELP chief fears the target will be unachievable

Billy Camden
Apprenticeships

Top levy-funded apprenticeship providers for past 2 years reavealed

Lifetime Training has continued its dominance

Billy Camden

Your thoughts

Leave a Reply

Your email address will not be published.

One comment

  1. Let’s hope they find a better way of administering this! It’s caused so much trouble for colleges, who get the brunt of angry employers for ESFA’s poor handling of this incentive! It’s created triple the work for our apprenticeship accounts team due to it being unnecessarily complex, we’ve had to refund angry employers out of college funds!