Business West reaction to Kickstart scheme changes

26th January 2021

On Friday 22nd January, the Department for Work and Pensions (DWP) announced a major change to its Kickstart job creation scheme, which offers financial support to businesses to create work placements for 16- to 24-year-olds.

Prior to the changes, smaller businesses – specifically those unable to provide 30 or more work placements for young people at risk of long-term unemployment – were required to apply through approved ‘gateway’ organisations, such as Business West - a Chamber of Commerce.

The reason behind the government’s decision - according to FE Week - is to help accelerate the programme and combat fraud.

From 3rd February, employers will have the option to apply directly to DWP through the government’s online portal.

Head of Skills at Business West, Nicky Williams, had a mixed reaction to the news, welcoming government’s decision to open the scheme to businesses directly but expressing concerns given the existing backlog of applications.

“The government’s drive to support the creation of new jobs at this challenging time is laudable. Thousands of businesses have already stepped forward to create new opportunities across the UK as part of the Kickstart scheme.

“Accredited Chambers of Commerce such as Business West are proud of the role they are playing in supporting businesses to secure approval for these placements and have worked hard to support DWP to get the programme up and running.

“We hope that DWP will commit to clear the backlog of approvals needed for placements already in the system, before processing any new placements, and continue to encourage small business to work with gateways.”

To date, Business West has created 130 placements with local businesses through the programme and as part of the British Chambers of Commerce it has been a constructive partner on this project since its inception. Despite numerous challenges and delays, the British Chambers of Commerce network has invested and planned – on the basis of the model painstakingly agreed with DWP – and have been successful in securing almost twelve thousand quality placements for young people nationally.

Commenting further, Nicky Williams added:

“Business West has worked tirelessly with companies within our local business community who have risen to the challenge of creating high quality placements and demonstrated patience throughout the process which has been beset by delays. I’m pleased to say working alongside DWP in the South West we have sorted out processes and applications are now being processed.

“Business West will remain a trusted gateway to support businesses through the complicated application process and will continue to support businesses wanting to apply directly once details are released by the DWP.

“As ever our priority is to our community – both businesses and the people who live here. Fundamentally this is about getting young people back into work and supporting businesses to get back on their feet after a difficult year; being part of reducing youth unemployment in the coming months is the best outcome there could be.”

For more information contact Nicky Williams or visit: www.businesswest.co.uk/kickstart

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