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Sixteen to 25-year-olds have suffered most during the Covid-19 crisis. As the country recovers, there’s a jobs shortage. Especially in certain sectors, such as logistics. Fortunately, a generation of prospective employees has left education. Is now the time to tap into this talent pool? Importantly, there’s government funding support to employ young people.


Two ways to recruit

Essentially, there are two types of government funding support to employ young people. Both offer key benefits to employers. Simply choose what works best for your business. Employ an apprentice. Or recruit using the Kickstart Scheme.



Remember, an apprenticeship must last for at least a year. Government aid is available for new apprentices hired between 1 April 2021 and 30 September 2021. Typically, apprentices are 16-18-year-olds not in education. Those aged 19-24 with an education, health and care plan are also eligible. As are 19–24-year-olds who have been in local authority care.


Benefits to employers

Employers receive an incentive payment of £3,000. This is in addition to the £1,000 employers already receive for hiring an apprentice. It’s paid in two equal instalments. The first comes 90 days after the apprenticeship commenced. The second is payable one year after the start date. Claim by 30 November 2021 via your Apprenticeship service account. It’s easy to set up. Simply follow the apprenticeships guidelines.


Help with apprenticeship training costs

Check if you’re subject to the apprenticeship levy. If not, you can get help with training costs. Employers pay 5%. The government contributes 95%, up to the funding band maximum.


NMW applies

Don’t forget about the National Minimum Wage (NMW). It applies to all apprenticeships. The NMW covers all hours subject to work, training and study for Maths and English qualifications. For 16-18-year-olds the NMW rate is £4.30 per hour. It’s the same for those aged 19+ for the first year. Then, in the second year, the rate rises to the relevant age-related amount.


Government funding support to employ young people

Yet, apprenticeships may not be right for your business. Thinking of employing someone aged 16-24 in receipt of Universal Credit? Then, the Kickstart Scheme could be the solution.


This funding covers 100% of the NMW. Or the National Living Wage. It’s applicable for 25 hours per week for a total of six months. Employers are responsible for paying for any additional hours worked.


Kickstart Scheme advantages

There are several other advantages for businesses using the Scheme. Employers benefit from associated employer National Insurance Contributions (NICs). Plus, the Scheme covers the minimum automatic enrolment pension contributions. Finally, there’s a £1,500 grant per job to help with set-up costs.


Conditions apply

The Kickstart Scheme covers new jobs up to 31 December 2021. As you’d expect, the funding comes with conditions. Both employer and employee must commit to receiving funding for six months. It cannot replace existing or planned vacancies. Nor can employers use the funding to reduce hours worked by their existing workforce. Apply online for a Kickstart Scheme grant.This scheme is currently open to 31 December 2021.


Need help?

Government funding support to employ young people has many advantages. That said, you may have questions. What is the best approach for your business? We can help. Call our team on on 01785 243276.