How it works
The government has introduced a new Kickstart Scheme in the UK, a £2 billion fund to create hundreds of thousands of high quality 6-month work placements aimed at those aged 16-24 who are on Universal Credit and are deemed to be at risk of long-term unemployment.
How much funding will I receive?
Funding available for each job will cover 100% of the relevant National Minimum Wage for 25 hours a week, plus the associated employer National Insurance contributions and employer minimum automatic enrolment contributions.
You will also receive up to £1,500 per placement to cover the costs of equipment, training, and other associated new-starter costs.
For each ‘Kickstarter’ job, the government will:
- Cover the cost of 25 hours’ work a week at the National Minimum Wage
- £4.55 for under 18s
- £6.45 for 18 to 20-year-olds
- £8.20 for 21 to 24-year-olds
(Employers will also be able to top up that payment and/or offer more than the 25 hours work per week if they wish)
When will I get paid?
Mercury will make Funding payments in accordance with the following payment schedule for each Participant employed by the Employer as part of the Kickstart Scheme. The Funding per Participant will be paid in the following instalments:
Instalments |
Grant sum payable |
Payment date/milestone |
1st payment |
One £1500 payment per Participant for set-up and support costs |
On confirmation to DWP’s satisfaction that the Participant has started employment with the Grant Recipient. |
2nd payment |
100% of the Relevant Wage for 25 hours a week of work by the Participant during the first month of the job, plus the associated employer National Insurance contributions and employer minimum automatic enrolment contributions. |
Paid in arrears – on confirmation that Participant paid through pay-as-you-earn tax (PAYE) for the first month. This payment is expected to be in or around the 6th week of the placement. |
3rd to 7th payments |
100% of the Relevant Wage for 25 hours a week of work by the Participant during the subsequent second, third, fourth, fifth and sixth months of the job, plus the associated employer National Insurance contributions and employer minimum automatic enrolment contributions. |
Paid in arrears – approximately every month after the 2nd payment on confirmation that Participant paid through PAYE for the previous month. |
How is the grant paid?
The funding would be initially transferred to us as your Kickstart Gateway, then as soon as the funding is confirmed, we will contact you to arrange a transfer into your business account.