Select Committee · Public Accounts Committee

DWP Employment Support 2: Kickstart scheme

Status: Closed Opened: 21 Oct 2021 Closed: 26 Apr 2022 8 recommendations 14 conclusions 1 report

In a follow up to its wider inquiry into DWP support for employment during Covid the Committee will question senior DWP officials more closely specifically on the ‘Kickstart scheme’. The ‘Plan for Jobs’ announced in July 2020 included the £1.9 billion Kickstart scheme for young people. At that point, the Office for Budget Responsibility (OBR) … Show more

Reports

1 report
Title HC No. Published Items Response
Thirty-Ninth Report - DWP Employment Support: Kickstart Sch… HC 655 25 Feb 2022 22 Responded

Recommendations & Conclusions

22 items
2 Recommendation Thirty-Ninth Report - DWP Employment Su… Accepted

Many employers have been frustrated at the slow progress in finding suitable people to fill...

Many employers have been frustrated at the slow progress in finding suitable people to fill the Kickstart vacancies they have created. The Department initially aimed for 250,000 people to have started Kickstart jobs by the end of December 2021, but in practice take up of the scheme has been slower. … Read more

Government response AI summary
The government disagrees that slow progress was made in finding suitable people to fill Kickstart vacancies. Since the scheme started, around 160,000 Kickstart jobs have been filled by young people, with the final Kickstart jobs started by young people on 31 March 2022.
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HM Treasury
3 Recommendation Thirty-Ninth Report - DWP Employment Su… Not Addressed

The Department plans to evaluate Kickstart but has not set out clearly enough the measures...

The Department plans to evaluate Kickstart but has not set out clearly enough the measures of success, or reported regularly enough on how the scheme is progressing. The Department plans to evaluate the impact Kickstart has on participants’ long-term employment outcomes, comparing participants’ future employment and time on benefits to … Read more

Government response AI summary
The government provides the PAC conclusion instead of the government response.
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HM Treasury
4 Recommendation Thirty-Ninth Report - DWP Employment Su… Accepted

Work coaches decide which young people will benefit most from Kickstart but the Department has...

Work coaches decide which young people will benefit most from Kickstart but the Department has no way of knowing if they refer the right people to employers. DWP Employment Support: Kickstart Scheme 7 The Kickstart Scheme is available to young people, who are on Universal Credit and whom a jobcentre … Read more

Government response AI summary
The government agrees to use management information to monitor and manage how work coaches are deciding what support would work best for different claimants. However, the department disagrees that they have no way of knowing if work coaches are referring the right people.
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HM Treasury
5 Recommendation Thirty-Ninth Report - DWP Employment Su… Accepted

The Department does not monitor properly how well employers are supporting Kickstart participants.

The Department does not monitor properly how well employers are supporting Kickstart participants. The Department pays £1,500 per Kickstart participant to employers to fund set-up costs and employability support for Kickstart participants, which it hopes will make participants more employable in the future. However, it does not specify or offer … Read more

Government response AI summary
The government agrees with the Committee’s recommendation. As part of the Scheme evaluation is covering the delivery of employability support using employer and gateways surveys. The department is also considering options for undertaking sample checks on employers, which will include whether the employability support is …
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HM Treasury
6 Recommendation Thirty-Ninth Report - DWP Employment Su… Accepted

It is not clear how the Department uses Kickstart in tandem with its other employment...

It is not clear how the Department uses Kickstart in tandem with its other employment support to best sustain young people in work. The Department aims to provide tailored help based on work coach’s understanding of the claimants they work with. However, it is not clear that there is a … Read more

Government response AI summary
The government states that work coach discretion is fundamental, outlining the Youth Offer, support during Kickstart jobs, the Way to Work campaign, and comprehensive guidance for DWP colleagues.
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HM Treasury
1 Recommendation Thirty-Ninth Report - DWP Employment Su… Accepted

On the basis of a report by the Comptroller and Auditor General, we took evidence...

On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department for Work and Pensions (the Department) about the Kickstart Scheme.1 The Government announced the Kickstart Scheme on 8 July 2020 as part of its wider Plan for Jobs, a package of measures … Read more

Government response AI summary
The government will continue to conduct a routine review of COVID-19 costs where there have been material changes reliably attributed to COVID-19 and provide public updates annually for the next two years, after which the Treasury will review what is still required.
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HM Treasury
7 Conclusion Thirty-Ninth Report - DWP Employment Su… Rejected

The Department had aimed for Kickstart to have achieved 250,000 job starts by 31 December...

The Department had aimed for Kickstart to have achieved 250,000 job starts by 31 December 2021, the initial closing date for new job placements to begin.24 In practice, take up of the scheme was slower than the Department expected; by mid-December 2021 there had been 110,000 starts, with more than … Read more

Government response AI summary
The government disagrees with the committee's assertion of slow progress in filling Kickstart vacancies, stating that around 160,000 jobs were filled by the scheme's end date and detailing the active engagement methods used with employers and young people.
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HM Treasury
8 Conclusion Thirty-Ninth Report - DWP Employment Su… Accepted

Another factor in the reduced take up of the scheme has been the length of...

Another factor in the reduced take up of the scheme has been the length of time taken by the Department to advertise and fill Kickstart roles.28 Some employers have complained of delays, both in the Department’s processes for accepting bids for vacancies, and in receiving referrals of young people to … Read more

Government response AI summary
The government disagrees with the committee's assertion that slow progress was made in finding suitable people to fill Kickstart vacancies, highlighting that around 160,000 Kickstart jobs have been filled and detailing various engagement methods with employers.
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HM Treasury
9 Conclusion Thirty-Ninth Report - DWP Employment Su… Accepted

Employers told the National Audit Office that in some cases they did not receive any...

Employers told the National Audit Office that in some cases they did not receive any referrals of job candidates at all, and that sometimes the Department removed their vacancies from its system without explanation.34 The charity Catch22, which has acted as a Kickstart gateway, told us that, in its experience, … Read more

Government response AI summary
The government disagrees that slow progress was made and outlines existing efforts, including District Account Managers, employer events, enhanced functionality on the Find a Job service, and advice to employers on managing expectations.
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HM Treasury
10 Conclusion Thirty-Ninth Report - DWP Employment Su… Rejected

In September 2021, the number of young (16- to 24-year-old) unemployed people claiming Universal Credit...

In September 2021, the number of young (16- to 24-year-old) unemployed people claiming Universal Credit and searching for work for more than one year was approximately 144,000, three times the pre-pandemic number of 48,800 in February 2020.38 In the same month there were 186,000 Kickstart vacancies.39 Since April 2020, the … Read more

Government response AI summary
The government disagrees with the committee's assertion that slow progress was made in filling Kickstart vacancies, highlighting the 160,000 jobs filled and various active engagement methods used with employers and young people.
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HM Treasury
11 Conclusion Thirty-Ninth Report - DWP Employment Su… Accepted

The Department developed an evaluation plan to assess Kickstart’s impacts early on in the scheme’s...

The Department developed an evaluation plan to assess Kickstart’s impacts early on in the scheme’s development.42 This plan has two main elements. The first element is an analysis of Kickstart participants’ employment records, time on benefits, and earnings after their placements have finished, compared with the equivalent outcomes for similar … Read more

Government response AI summary
The government aims to publish process evaluation findings in Spring 2023, and will continue to evaluate longer-term outcomes for Kickstart participants and use findings to improve current and future employment support.
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HM Treasury
12 Conclusion Thirty-Ninth Report - DWP Employment Su… Deferred

In its business case, the Department recognised the risk that Kickstart might fund jobs that...

In its business case, the Department recognised the risk that Kickstart might fund jobs that would have been created anyway, and assumed that only 50% of the jobs it funded would in fact be additional.46 However, it told us it was ‘very careful’ about the applications it agreed to fund, … Read more

Government response AI summary
The government agrees with the committee's point and is conducting an ongoing evaluation of the Kickstart Scheme, with process findings to be published in Spring 2023. This evaluation will consider how scheme experiences and outcomes vary and inform future employment support.
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HM Treasury
13 Recommendation Thirty-Ninth Report - DWP Employment Su… Rejected

We have previously observed that the Department’s evaluation of its employment support schemes depends on...

We have previously observed that the Department’s evaluation of its employment support schemes depends on clear evidence, and that accountability to stakeholders requires detailed and timely publication of performance data during each scheme’s operation. We recommended the Department produce regular data updates on its schemes, including Kickstart, at a local … Read more

Government response AI summary
The government disagrees with the recommendation to produce regular data updates on its schemes at a local granular level, and is considering how best it can put information about these schemes into the public domain after their closure and how information is best provided on …
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HM Treasury
14 Conclusion Thirty-Ninth Report - DWP Employment Su… Acknowledged

The only formal requirements for young people going into Kickstart jobs are that they are...

The only formal requirements for young people going into Kickstart jobs are that they are aged 16 to 24, claiming Universal Credit, and seeking work.55 The Department issues its front-line work coaches with guidance about the types of people who might be most suitable for a Kickstart role, and then … Read more

Government response AI summary
The government agrees with the committee's recommendation, stating that management information is fundamental to the design and implementation of the department's support for customers, though disagrees that the department has no way of knowing if work coaches are referring the right people.
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HM Treasury
15 Conclusion Thirty-Ninth Report - DWP Employment Su… Accepted

The National Audit Office reported that the Department does not know how effectively Kickstart has...

The National Audit Office reported that the Department does not know how effectively Kickstart has been targeted at those most likely to benefit, and it has previously found that the Department cannot readily assess how consistently work coaches apply discretion, or whether it is providing a consistent service over time, … Read more

Government response AI summary
The government disagrees with the committee's assertion that they have no way of knowing if work coaches are referring the right young people to employers, stating that they use Management Information to frame and refresh work coach guidance, and the Quality Assurance Framework assesses appropriate …
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HM Treasury
16 Conclusion Thirty-Ninth Report - DWP Employment Su… Deferred

The Department conducted its first analysis of Kickstart participants’ ethnicity in August 2021, 11 months...

The Department conducted its first analysis of Kickstart participants’ ethnicity in August 2021, 11 months after Kickstart had launched, and found that a slightly greater proportion of Kickstart participants were from a Black or ethnic minority group than 55 C&AG’s Report, paragraph 16. 56 C&AG’s Report, paragraph 1.9. 57 Qq12, … Read more

Government response AI summary
The government agrees with the committee's point and is conducting an ongoing evaluation of the Kickstart Scheme, with process findings to be published in Spring 2023. This evaluation will consider how scheme experiences and outcomes vary and inform future employment support.
Read full response →
HM Treasury
17 Recommendation Thirty-Ninth Report - DWP Employment Su… Accepted

The Department requires employers to provide employability support to Kickstart participants alongside their jobs, an...

The Department requires employers to provide employability support to Kickstart participants alongside their jobs, an approach it hopes will make participants more employable in the future. The Department gives employers £1,500 per participant to cover the costs of providing this employability support, along with other relevant set-up costs. The Department … Read more

Government response AI summary
The government will evaluate employability support delivered through the Kickstart scheme, potentially increasing checks and communications with employers, and is considering options for recovering misspent funds.
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HM Treasury
18 Conclusion Thirty-Ninth Report - DWP Employment Su… Not Addressed

The Department employs Kickstart district account managers to maintain relationships with employers.

The Department employs Kickstart district account managers to maintain relationships with employers. These account managers are expected to keep in touch with employers and to learn about young peoples’ experiences in their Kickstart jobs.74 The 64 Qq 55, 88–89; C&AG’s Report, paragraph 3.14. 65 C&AG’s Report, paragraph 3.14. 66 C&AG’s … Read more

Government response AI summary
The government agrees with the committee's observation regarding the lack of central collation of information from account manager discussions but does not commit to addressing this specific issue. Instead, it states it is reviewing successful features of the Kickstart scheme to incorporate into future programmes.
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HM Treasury
19 Conclusion Thirty-Ninth Report - DWP Employment Su… Accepted

The Department does record some data on the more serious issues it has become aware...

The Department does record some data on the more serious issues it has become aware of, including cases where health and safety concerns had been raised by participants or account managers, and instances where young people were working in Kickstart jobs but were not being paid. The Department told us … Read more

Government response AI summary
The government agrees with the committee's observation on recording serious issues, committing to an evaluation of employer compliance through surveys, which may lead to enhanced communications or operational checks. It is also considering options for sample checks on employers and for the recovery of misspent …
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HM Treasury
20 Conclusion Thirty-Ninth Report - DWP Employment Su… Accepted

The Prince’s Trust and Catch22 are both charities that have acted as Gateways for Kickstart...

The Prince’s Trust and Catch22 are both charities that have acted as Gateways for Kickstart jobs. Catch22 describes itself as “a big supporter of Kickstart”, but told us that the quality of placements varies and said that there should be stronger minimum standards and expectations for Gateways.80 The Prince’s Trust … Read more

Government response AI summary
The government will cover the delivery of employability support using employer and gateway surveys. They are considering sample checks on employers and options for recovery of misspent funds.
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HM Treasury
21 Conclusion Thirty-Ninth Report - DWP Employment Su… Accepted

The Department said that Kickstart is “in many ways a flagship” scheme.

The Department said that Kickstart is “in many ways a flagship” scheme. However, it operates alongside a range of other types of support that the department provides.82 The Association for Convenience Stores told us that the large range of support schemes can mean that some smaller employers are hesitant to … Read more

Government response AI summary
The government states that work coach discretion is fundamental, outlining the Youth Offer, support during Kickstart jobs, the Way to Work campaign, and comprehensive guidance for DWP colleagues.
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HM Treasury
22 Conclusion Thirty-Ninth Report - DWP Employment Su… Accepted

The Department told us that its youth employability work coaches and youth hubs bring together...

The Department told us that its youth employability work coaches and youth hubs bring together provision and services together to create a ‘journey’ for individuals, by referring people to Kickstart jobs and other schemes from the Department, and signposting people to other support which is available in the area.85 Additionally, … Read more

Government response AI summary
The government states that work coach discretion is fundamental, outlining the Youth Offer, support during Kickstart jobs, the Way to Work campaign, and comprehensive guidance for DWP colleagues.
Read full response →
HM Treasury

Oral evidence sessions

1 session
Date Witnesses
6 Dec 2021 Jonathan Mills · Department for Energy Security and Net Zero, Karen Gosden · Department for Work & Pensions, Peter Schofield · Department for Work and Pensions View ↗

Who gave evidence

3 witnesses
WitnessOrganisationSessions
Jonathan Mills · Director General, Energy Markets and Supply Department for Energy Security and Net Zero 1
Karen Gosden · Area Director Work and Health Services and SRO fo… Department for Work & Pensions 1
Peter Schofield · Permanent Secretary Department for Work and Pensions 1