Thirty-Ninth Report - DWP Employment Support: Kickstart Scheme
Select Committee
Public Accounts Committee
HC 655
25 February 2022
Recommendations
8 results
2
Accepted
Many employers have been frustrated at the slow progress in finding suitable people to fill...
Recommendation
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 …
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Government Response 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.
HM Treasury
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3
The Department plans to evaluate Kickstart but has not set out clearly enough the measures...
Recommendation
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 …
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HM Treasury
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4
Accepted
Work coaches decide which young people will benefit most from Kickstart but the Department has...
Recommendation
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 …
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Government Response 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.
HM Treasury
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5
Accepted
The Department does not monitor properly how well employers are supporting Kickstart participants.
Recommendation
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 …
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Government Response 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 delivered as set out in the employer’s grant application. The department expects to complete this options scoping work by the end of Spring 2022 The department is also considering options for recovery of misspent funds.
HM Treasury
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6
Accepted
It is not clear how the Department uses Kickstart in tandem with its other employment...
Recommendation
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 …
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Government Response 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.
HM Treasury
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1
Accepted
On the basis of a report by the Comptroller and Auditor General, we took evidence...
Recommendation
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 …
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Government Response 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.
HM Treasury
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13
Rejected
We have previously observed that the Department’s evaluation of its employment support schemes depends on...
Recommendation
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 …
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Government Response 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 schemes that will continue for longer.
HM Treasury
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17
Accepted
The Department requires employers to provide employability support to Kickstart participants alongside their jobs, an...
Recommendation
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 …
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Government Response 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.
HM Treasury
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Conclusions (14) Observations and findings — click to expand
7
Conclusion
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 …
8
Conclusion
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 …
9
Conclusion
Accepted
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, …
Government Response 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.
10
Conclusion
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 …
11
Conclusion
Accepted
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 …
Government Response 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.
12
Conclusion
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, …
14
Conclusion
Acknowledged
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 …
Government Response 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.
15
Conclusion
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, …
16
Conclusion
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, …
18
Conclusion
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 …
19
Conclusion
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 …
20
Conclusion
Accepted
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 …
Government Response 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.
21
Conclusion
Accepted
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 …
Government Response 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.
22
Conclusion
Accepted
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, …
Government Response 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.