Fewer than 2,000 young people have actually started new roles via the government’s Kickstart scheme, despite the ‘creation’ of 120,000 new jobs

In addition, with reports that the DWP has approved 'gateway' companies with little to no trading history or based outside of the UK, the government announces that it is closing applications for new gateways this week

While the government has today announced the 'creation' of 120,000 jobs for 16 to 24-year-olds through its 'flagship' Kickstart Scheme, fewer than 2,000 people have actually started new roles.

Launching the £2 billion Scheme in September 2020, as part of the government's Plan for Jobs to help economic recovery in the wake of the Covid pandemic, the Chancellor Rishi Sunak said - 

'This isn’t just about kickstarting our country’s economy – it is an opportunity to kickstart the careers of thousands of young people who could otherwise be left behind as a result of the pandemic.

The scheme will open the door to a brighter future for a new generation and ensure the UK bounces back stronger as a country.'

However while the government said today that it has worked 'with some of the most exciting companies' to create more than 120,000 Kickstart jobs, Work and Pensions Minister Mims Davies confirmed in a Parliamentary written answer last week that, as of 15 January 2021, there had been 1,868 new starts in the UK.

The government also announced today that while small employers with less than 30 vacancies have had to use ‘gateway’ companies to access the scheme - 

'From 3 February 2021, employers will be able to apply to the Kickstart Scheme without a minimum threshold of 30 jobs.

With so many gateways already approved, we are closing applications for new gateways this week ...'

However, while the government says it is removing the 30 vacancy restriction to make it easier for employers of all sizes to benefit from joining the scheme (around 600 gateways have already been approved, including local colleges and voluntary sector organisations), feweek.co.uk reports that dozens of 'gateway' companies have been selected with little to no trading history or based outside of the UK -

'Examples of gateway firms shared with the Treasury and DWP include [one] which according to companies house was incorporated just three months ago.

Another ... lists a gmail contact email address on the gov.uk Kickstart website and their first set of accounts filed in November 2020 shows 'total assets less liabilities' of £100.

[And] ... a DWP authorised Kickstart gateway firm which Companies House lists as being based in Tel-Aviv, Israel and therefore has not filed accounts in the UK.'

For more information on today's government announcement, see Kickstart moves up a gear with over 120,000 jobs created so far and government making it even simpler for employers to join from gov.uk