DWP Employment Support 2: Kickstart scheme
Closed
What the inquiry looked at
“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) was expecting a 10% peak in unemployment in quarter 2 of 2020, and furlough was expected to end in October 2020. The OBR now expects unemployment to peak at 6.5% in the final quarter of 2021, while the furlough scheme in fact ended in September 2021. The Kickstart scheme is due to end in December 2021, with employment prospects still uncertain. If you have evidence on the operation or effectiveness of the Kickstart scheme and the value for money it represents, please submit it here by Monday 29 November”
The committee's words, from the inquiry page on parliament.uk ↗.
What it found
To combat the forecasted surge in youth unemployment at the end of the COVID:19 Furlough scheme in September 2020, the Department for Work & Pensions (the Department) introduced a £1.9 billion Kickstart scheme to create jobs for up to 250,000 young people that would each last six months, pay at least the minimum wage, and provide at least 25 hours a week of work. We support the intention of supporting young people into work at what was expected to be a downturn in employment opportunities.
The scheme was implemented at immense speed, but the early delivery was chaotic with the Department neglecting to put in place basic management information that would be expected for a multi-billion-pound grant programme. As a consequence, the Department has not monitored and does not know whether it is putting the right people onto Kickstart, why people who are not taking up Kickstart jobs are not doing so, or what employers are providing with the £1,500 employability support grants awarded for each young person taken on through the scheme.
Now over one year since the scheme was launched, and as a result of stronger than expected economic growth, it is clear that more people found non-Kickstart jobs than the Department initially anticipated. As a result of this, and the opening up of the economy during 2021, the Department is now forecasting that Kickstart will support far fewer young people (168,000) and also cost much less (£1.26 billion) than envisaged.
However, despite these more favourable conditions many of the young people who joined Universal Credit at the start of the pandemic have remained on the benefit since, and the Department has been unable to explain why these people have not moved into Kickstart jobs. At the same time many employers have been frustrated at how long it has taken to fill their Kickstart vacancies, with many waiting months for vacancies to be filled, with no guarantee they ever will be.
The Department aims to provide tailored help based on the understanding its work coaches have of the claimants they work with. However, during our inquiry, it became clear that there isn’t a managed “pathway” or sequence of interventions for each young person, such as somebody who needs to build confidence before they are ready to apply for an open market or Kickstart job, or what engagement there is with employers to sustain employment after Kickstart. It is also hard to see how the Department is using Kickstart in concert with its other employment schemes and therefore getting maximum value for the taxpayer without duplicating spend.
Moving forward the Department has plans to evaluate Kickstart, but, without sufficient monitoring of how the programme has worked in practice as it has gone along, this will only produce partial results. The Department needs to set out much more clearly how it will measure success across all of its employment support schemes, and report more regularly on how schemes are progressing.
What the government said
The government responded on 28 April 2022. The deadline was 25 April 2022.
Read the government's response ↗ Read the report ↗ Report an error
How the inquiry ran
Each dot is a dated item listed on this page, from the inquiry's opening on 21 October 2021 to 28 April 2022. The dashed mark is the deadline Parliament records for the government's response.
- Oral evidence 6 Dec 2021
- Report 25 Feb 2022
- Government response 28 Apr 2022
What it recommended 8 recommendations · 14 conclusions
2Many employers have been frustrated at the slow progress in finding suitable people to fill...
3The Department plans to evaluate Kickstart but has not set out clearly enough the measures...
4Work coaches decide which young people will benefit most from Kickstart but the Department has...
5The Department does not monitor properly how well employers are supporting Kickstart participants.
6It is not clear how the Department uses Kickstart in tandem with its other employment...
1On the basis of a report by the Comptroller and Auditor General, we took evidence...
7The Department had aimed for Kickstart to have achieved 250,000 job starts by 31 December...
8Another factor in the reduced take up of the scheme has been the length of...
9Employers told the National Audit Office that in some cases they did not receive any...
10In September 2021, the number of young (16- to 24-year-old) unemployed people claiming Universal Credit...
11The Department developed an evaluation plan to assess Kickstart’s impacts early on in the scheme’s...
12In its business case, the Department recognised the risk that Kickstart might fund jobs that...
13We have previously observed that the Department’s evaluation of its employment support schemes depends on...
14The only formal requirements for young people going into Kickstart jobs are that they are...
15The National Audit Office reported that the Department does not know how effectively Kickstart has...
16The Department conducted its first analysis of Kickstart participants’ ethnicity in August 2021, 11 months...
17The Department requires employers to provide employability support to Kickstart participants alongside their jobs, an...
18The Department employs Kickstart district account managers to maintain relationships with employers.
19The Department does record some data on the more serious issues it has become aware...
20The Prince’s Trust and Catch22 are both charities that have acted as Gateways for Kickstart...
21The Department said that Kickstart is “in many ways a flagship” scheme.
22The Department told us that its youth employability work coaches and youth hubs bring together...
Evidence
Oral evidence sessions 1
- 6 Dec 2021DWP Employment Support 2: Kickstart scheme3 witnesses, listed belowparliament.uk ↗
Who gave evidence 3 witnesses
- Jonathan MillsDirector General, Energy Markets and Supply, Department for Energy Security and Net Zero
- Karen GosdenArea Director Work and Health Services and SRO for Kickstart, Department for Work & Pensions
- Peter SchofieldPermanent Secretary, Department for Work and Pensions