The Kickstart Scheme provides funding to create new jobs for 16 to 24 year olds on Universal Credit who are at risk of long term unemployment.
In its report published 25 Feb, the Public Accounts Committee says it supports the Department for Work and Pensions’ “intention of supporting young people into work at what was expected to be a downturn in employment opportunities” – but the £1.9 billion “emergency intervention” Kickstart scheme has supported far fewer young people than predicted, “early delivery was chaotic” and DWP “neglected to put in place basic management information that would be expected for a multi-billion-pound grant programme”.
Over one year since the scheme was launched, with “stronger than expected economic growth”, DWP is now forecasting that Kickstart will support far fewer young people than envisaged – 168,000 vs original prediction of 250,000 – and will cost £1.26 billion.
But despite more favourable than predicted economic conditions, many young people who joined Universal Credit at the start of the pandemic have remained on the benefit, and DWP doesn’t know why these people have not moved into Kickstart jobs.
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