Has the Kickstart Scheme been extended?

Written by Kevin Murphy
7 October, 2021
young person sat a desk with words The Kickstart and Apprentice Extension as an overlay

The Kickstart Scheme

Has the Kickstart Scheme been extended? The chancellor, Rishi Sunak has announced that he will be extending the Kickstart Scheme until March 2022. Although scheduled to end at the end of 2021, the 3-month bonus allows employers to submit applications until 17 December 2021. The specific funding will be confirmed by the Chancellor on 27 October. 

The scheme has provided job placements for young people aged 16-24 years old on Universal Credit at the risk of long-term unemployment. The recent Progress Update report showed that 76,900 young people have had a Kickstart Job since the scheme began. The additional three-month extension will encourage more young people and employers to take advantage of the scheme. 

How do I employ through the Kickstart Scheme?

To employ through the scheme, an application for grant funding needs to be submitted via the government website. Employers will be able to spread job start dates up until the 31st March 2022, as long as their application is in before 17 December 2021. 

Although Kickstarters are a great addition to any business, they are employed under a fixed-term contract that means special rules do apply to them. Failing to have the correct contractual terms for Kickstart employees can result in difficult HR headaches. 

To understand what are the correct contractual terms, read our employer’s guide to the Kickstart scheme here.

Extension for apprenticeship employer incentives

In addition to the Kickstart scheme extension, Rishi Sunak has also announced the extension to cash incentives for hiring new apprentices.  A £3,000 bonus for every apprentice a  business hires, ended at the end of September, but the Chancellor has decided to extend the scheme until 30 November 2021.

Previously the apprentice cash incentives were introduced to offer firms, £2,000 for apprentices aged 16 to 24, and £1500 for ages 25 and over. In February 2021, these incentives were increased to £3,000 for all apprentices. 

An apprenticeship allows the opportunity for employees to be employed in a real job, gaining on-the-job training with the accompaniment of studying for a formal qualification. 

Please be aware that a contract of employment for an apprentice is different from a full-time employment contract. Contact us for a bespoke apprenticeship contract of employment. 

Employment Law Solutions

Contracts are our bread and butter!  We offer businesses free contract reviews.

We can help you ensure that your business is protected and that you can benefit the most from the government-backed Kickstart scheme or Apprenticeship cash incentive scheme. We offer 24/7, 365 guidance providing stress-free, pragmatic solutions to your problems. Our mission is to help you concentrate on what you do best – running your business. Protecting your business will always be our main priority.

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