Factsheet for case GB-2020-28/943 – Updated – measures in United Kingdom
|Country||United Kingdom , applies nationwide|
|Time period||Open ended, started on 08 July 2020|
|Type||Other initiatives or policies|
Promoting the economic, labour market and social recovery
– Active labour market policies, incl. subsidised job creation
|Author||Claire Evans (Warwick University) and Eurofound|
|Case created||08 July 2020 (updated 11 January 2021)|
On the 8 July, the Chancellor of the Exchequer announced his 'Plan for Jobs' in his Summer Statement to the House of Commons. The plan is focused on boosting economic recovery, following the UK's lockdown and the recent easing of restrictions. The Chancellor described the plan as the 'second phase' of response to the coronavirus crisis and as being about jobs. He began his speech by stating that the government will not accept rising unemployment and that it will do all it can to give 'everyone the opportunity of good and secure work.' The Plan for Jobs has 'a clear goal: to protect, support and create jobs', given the 25% contraction in the UK economy in the preceding months and the predictions by the Office for Budget Responsibility and Bank of England as to significant job losses.
These initiatives are aimed at supporting young people, who it is predicted, will be hardest hit by the crisis (the Chancellor reported that the under-25s are two and a half times more likely to work in a sector that has been closed e.g. retail and hospitality). The new Kickstart Scheme is thus 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.'
Under the scheme, employers will be directly paid to create new jobs for any 16 to 24-year-old at risk of long-term unemployment. These will have to be new jobs, as the funding will be conditional on proof that these jobs are additional. The jobs will have to be 'decent'; with a minimum of 25 hours per week paid at least the National Minimum Wage. Employers will also have to provide 'Kickstarters' with training and support to find a permanent job. If employers meet these conditions, the Government will pay young people’s wages for six months, plus an amount to cover overheads. Thus, for a 24-year-old, the grant will be around GBP 6,500.
Employers can apply to be part of the scheme from August. There is to be no cap on the numbers of places available and the Chancellor has pledged an initial GBP billion, a sum he says will be enough to fund hundreds of thousands of jobs.
The Government also pledged on the 8 July to:
As yet unknown. The package was announced on the 8 July, 2020.
The scheme was launched on the 2 September and within the first 24 hours, more than 6,000 employers had started an application.
Other groups of workers
Youth (18-25) in employment
|Applies to all businesses||Does not apply to citizens|
Company / Companies
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Form||Not applicable||Not applicable|
Social partners' role in the implementation, monitoring and assessment phase:
It is assumed that the social partners at peak-level will have been informed; however, there will not have been formal consultation/involvement in the design, implementation and monitoring of the measure.
It can be assumed that the partners from both sides would be supportive of the measure.
Eurofound (2020), The Kickstart Initiative and incentivising apprenticeships, case GB-2020-28/943 (measures in United Kingdom), COVID-19 EU PolicyWatch, Dublin, http://eurofound.link/covid19eupolicywatch
Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process. All information is preliminary and subject to change.