Summary of changes to Kickstart Scheme terms and conditions – effective from 21 June 2021

Summary of changes to Kickstart Scheme Grant Agreements

This summary should help you understand the key updates we have made to the Kickstart Scheme grant agreements for employers and gateways receiving the Kickstart Scheme grant from the Department for Work and Pensions (DWP). It explains the key updates made since the previous versions were published on 22 December 2020. It does not list every change. We hope this summary is helpful but you should read the terms and conditions that apply to your organisation in full.

Which terms and conditions apply to you?

1. Kickstart Scheme Grant Funding Agreement: Terms and Conditions for Employers

This sets out the terms and conditions between DWP and an employer who has applied directly to the Kickstart Scheme. See the key updates to these terms and conditions and the Grant Offer Letter for Employers.

2. Kickstart Scheme Grant Funding Agreement: Terms and Conditions for Gateways

This sets out the terms and conditions between DWP and a Kickstart gateway taking part in the Kickstart Scheme. See the key updates to these terms and conditions and the Grant Offer Letter for Gateways.

3. Kickstart Scheme Terms and Conditions for Gateways and Employers

This sets out the terms and conditions which DWP requires to be in place between a Kickstart gateway and their employers. This is an agreement between a Kickstart gateway and an employer that the gateway represents. See the key updates to these terms and conditions.

When the updates take effect

The updated terms and conditions and changes to Grant Offer Letters are effective from 21 June 2021. The updated terms and conditions and changes to Grant Offer Letters apply to all Kickstart Scheme grants made by DWP and replace the previous versions published at the same address and/or provided to you. The updated terms and conditions and changes to Grant Offer Letters apply to grants awarded prior to, on and after 21 June 2021.

1. Key updates to the Kickstart Scheme Grant Funding Agreement: Terms and Conditions for Employers and Grant Offer Letter for Employers

Clause 2 (Definitions and Interpretation) of the Conditions

We have amended clause 2.2(5) as follows to reflect the end of the Brexit transition period:

“any reference which immediately before IP completion day (as defined in the European Union (Withdrawal) Act 2018 (EUWA)) was a reference to (as it has effect from time to time) any EU regulation, EU decision, EU tertiary legislation or provision of the EEA agreement (EU References) which forms part of domestic law by application of section 3 of the EUWA shall be read on and after IP completion day as a reference to the EU References as they form part of domestic law by virtue of section 3 of the EUWA as modified by domestic law from time to time;”

Clause 3 (Duration and Purpose of the Grant)

We have added new clauses 3.6 and 3.7 to clarify that (i) the maximum number of jobs stated in the Grant Offer Letter should not be exceeded without DWP’s permission and (ii) the same job should not be part of more than one grant agreement or application:

“3.6 The Grant Recipient must not, without the prior written consent of DWP, exceed the maximum number of employment opportunities to be funded as stated in the Grant Offer Letter and varied from time to time in accordance with this Grant Agreement.

3.7 The Grant Recipient will ensure that none of the jobs advertised or funded under this Grant Agreement are also part of another Kickstart Scheme grant agreement or application. The Grant Recipient acknowledges and agrees that DWP may choose not to provide any Grant funding for any job that it considers to be part of another Kickstart Scheme grant agreement or application and that the maximum number of employment opportunities to be funded under this Grant Agreement may be reduced accordingly.”

Clause 4 (Payment of Grant) of the Conditions

We have amended clause 4.4 to stress that the Grant Recipient must not claim the first grant instalment for a Participant until employment has commenced. Clause 4.4 is replaced with the following:

“The Grant Recipient may request payment of the first Grant instalment once the Participant has commenced their employment with the Grant Recipient (see note 5 of Annex 3 for more detail on what this means). The Grant Recipient must not request payment of the first Grant instalment before the Participant has commenced employment with the Grant Recipient. The Grant Recipient will provide any information or documentation prescribed by DWP from time to time to evidence that the Participant has started and continues in work with the Grant Recipient as part of the Kickstart Scheme. Payment of the first Grant instalment will be made following receipt by DWP of a request for payment and confirmation to DWP’s satisfaction that the Participant has started employment with the Grant Recipient.”

We have added a new clause 4.12 to explain that where the Grant Recipient allows a Participant to work for a Third Party, such as an affiliated company, the Grant Recipient must ensure that Third Party complies with the terms of the Grant Agreement. The Grant Recipient must obtain prior written consent from DWP before allowing a Participant to work for a Third Party:

“As explained in section 4.3 of the Grant Offer Letter, Participants must work under the day-to-day direction and control of the Grant Recipient and not a Third Party, unless otherwise agreed by DWP in writing. If any Participant does work for a Third Party, then the Grant Recipient must ensure that Third Party complies with the terms and conditions of this Grant Agreement as if it was the Grant Recipient.”

Clause 5 (Eligible and Ineligible Expenditure) of the Conditions

In clause 5.9, we have added the words “(unless deemed to be eligible under clause 5.2 of these Conditions)” after “…include the following”.

Clause 15 (Intellectual Property Rights) of the Conditions

We have added the following to clause 15.2 to clarify that DWP does not require the Grant Recipient to license materials created for use in its day-to-day activities outside the Kickstart Scheme:

“This licence excludes any materials created by the Grant Recipient or its Representatives for use in the Grant Recipient’s day-to-day activities outside the Kickstart Scheme.”

Clause 19 (Publicity) of the Conditions

We have added wording to clauses 19.6 and 19.7 to confirm the purposes for which Kickstart branding can be used, stress that the Grant Recipient must not harm the reputation and image of DWP or the Kickstart branding, and underline that the Grant Recipient needs DWP consent if it wants to allow a third party to use Kickstart branding. Clauses 19.6 and 19.7 are replaced by the following:

19.6 DWP consents to the Grant Recipient using DWP’s name and Kickstart Branding to publicise the Grant and the Funded Activities, provided that:

19.6.1 the Grant Recipient’s use of DWP’s name and Kickstart Branding does not in any way weaken or damage the reputation and image of DWP or the Kickstart Branding (including the goodwill associated with it); and
19.6.2 in using DWP’s name and Kickstart Branding, the Grant Recipient will comply with all reasonable branding guidelines issued by DWP from time to time, including those available at https://www.gov.uk/government/publications/kickstart-scheme-employer-resources/kickstart-scheme-brand-guidelines.

19.7 No other rights under the Kickstart Branding are granted to the Grant Recipient. In particular, the Grant Recipient has no right to permit any Third Party (including any affiliated or associated person) to use the Kickstart Branding without DWP’s prior written consent. The Grant Recipient will be responsible for the acts and omissions of any Third Party it permits to use the Kickstart Branding as if they were its own. The Grant Recipient will cease, and will procure that any Third Parties permitted to use the Kickstart Branding cease, all further use of the Kickstart Branding if requested to do so by DWP in writing.”

Clause 22 (Clawback, Events of Default and Termination) of the Conditions

The wording of clause 22.1.7 is replaced by the following:

“the Grant Recipient applies for, obtains or fails to declare Duplicate Funding;”

In clause 22.1.14, the following words are added at the end: “including through its application under Article 10 of the Northern Ireland Protocol”.

A new clause 22.1.15 is added as follows to reflect the application of international and domestic subsidy control rules:

“any court, tribunal or independent body or authority of competent jurisdiction requires any Grant paid to be recovered by reason of a breach of (i) the UK’s obligations under the Trade and Co-operation Agreement or any other applicable international agreement; or (ii) the terms of any UK subsidy control legislation;”

In clause 22.6, the following new sentence is added at the end to provide an example of where an Event of Default is incapable of remedy: “DWP may conclude an Event of Default is incapable of remedy where, for example, it is one of multiple Events of Default that have or may have occurred and which demonstrate (in DWP’s opinion) that the Grant Recipient is unwilling to comply, or unable to comply, with the terms and conditions of this Grant Agreement.”

Clause 23 (Dispute Resolution) of the Conditions

Clauses 23.1 and 23.2 are amended as follows to clarify that the dispute resolution procedure does not apply to the exercise of certain rights:

“23.1 The Parties will use all reasonable endeavours to negotiate in good faith, and settle amicably, any dispute that arises during the term of this Grant Agreement. This clause 23 does not apply to any dispute or complaint which relates to DWP’s right to withhold or withdraw funds, reduce the number of jobs to be funded, require remedial activity or terminate or any other rights exercised at DWP’s sole discretion or in DWP’s opinion.

23.2 All disputes shall be referred in the first instance to DWP’s Grant Manager and the Grant Recipient’s Kickstart Representative.”

Annex 1 (Definitions) of the Conditions

The definition of Change of Control is replaced by the following new definition. This change clarifies the application of the Change of Control provisions in the Grant Agreement:

“Change of Control means, in respect of the Grant Recipient or any person who Controls the Grant Recipient, any change of Control of that person. Control means the possession by a person, directly or indirectly, of the power to direct or cause the direction of the management and policies of the other person (whether through the ownership of voting shares, by contract or otherwise) and Controls shall be interpreted accordingly;”

The words “and any applicable implementing Law as amended from time to time” are deleted from the definition of Data Protection Legislation and the definition of Domestic Law is deleted in its entirety. These changes have been made as a result of the end of the Brexit transition period.

A new definition of Kickstart Branding is added as follows, reflecting the changes to clauses 19.6 and 19.7 described above:

“Kickstart Branding means the Kickstart and Kickstart Scheme names, the Kickstart Scheme logo and any registered or unregistered trade marks (including applications) owned by DWP in relation to any of them. It includes any future names or logos adopted by DWP in relation to the Kickstart Scheme;”

A new definition of Northern Ireland Protocol is added as follows, reflecting the changes to clause 22.1.14 described above:

“Northern Ireland Protocol means the Protocol on Ireland/Northern Ireland in the Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community;”

The definition of State Aid Law is deleted and replaced with the following, reflecting the end of the Brexit transition period:

“State Aid Law means the law embodied in Articles 107 – 109 of the Treaty on the Functioning of the European Union and any related legislation adopted by the Council, European Parliament and/or the Commission (including implementing legislation, decisions and communications) to the extent it applied or continues to apply at any time in the United Kingdom;”

A new definition of Trade and Cooperation Agreement is added as follows, reflecting the addition of clause 22.1.15 described above:

“Trade and Cooperation Agreement means the Trade and Cooperation Agreement between the European Union and the European Atomic Energy Community, of the one part, and the United Kingdom of Great Britain and Northern Ireland, of the other part (as that agreement is modified or supplemented from time to time in accordance with any provision of it or of any other future relationship agreement);”

Annex 2 (Funded Activities) of the Conditions

We have amended the final sentence of paragraph 3(d) for clarity. The changes are as follows:

“The Grant Recipient must meet its statutory duties in relation to employment rights and employer responsibilities in the workplace (for example, for health, safety and welfare) for all Kickstart Scheme Participants.”

We have amended paragraph 3(e) to underline that Kickstart jobs need to provide meaningful work for the young people and extensive time spent on training does not constitute a quality work experience.

“Employment opportunities offered by the Grant Recipient should not require Participants to undertake extensive training (either classroom or online) before they begin the job or at any point during the six months. For example, if a significant part of the job involves completing a training course or watching training videos, this would not constitute meaningful work or be equivalent to a job not funded by the Kickstart Scheme.”

We have updated and expanded the “Please note” section to provide more detail on the nature of a Kickstart Scheme job. These changes have been made in response to questions from employers and gateways:

“Please note:

1. A Kickstart job is not an apprenticeship but a Participant may move to an apprenticeship whilst taking part in the Kickstart Scheme. Grant funding will cease once a Participant ceases to be involved in the Kickstart Scheme (for example, because the Participant has moved from a Kickstart Scheme job to an apprenticeship).

2. Once a Kickstart Scheme job is created, it can be taken up by a new Participant once the previous Participant has ceased to be employed as part of the Kickstart Scheme. A Kickstart Scheme job cannot be filled more than once by the same Participant.

3. DWP will only provide Grant funding for candidates referred to the Grant Recipient by DWP. DWP selects the candidates to refer to the Grant Recipient’s Kickstart Scheme vacancies at DWP’s sole discretion. Any recruitment activity by the Grant Recipient will not determine which candidates DWP refers to the Grant Recipient.

4. The Grant Recipient will use reasonable endeavours to fill its vacancies as quickly as possible but is not otherwise obliged to accept candidates referred by DWP for its vacancies. Grant funding will only be provided once the Grant Recipient has accepted a candidate referred by DWP.

5. All Kickstart Scheme jobs must provide regular, meaningful work for Participants for six months. A job should not be designed to spread the six months of work over a longer period than six continuous months. For example, a job spread across seven months, with a one month break from work in the middle of it, will not be providing regular, meaningful work for the Participant. The Grant Recipient must notify DWP if any Participant is unable to carry out regular, meaningful work at any point during the six month Kickstart Scheme employment (as per clause 7.2.2).

6. DWP expects the Grant Recipient to treat the Participants fairly and no less favourably than other staff members doing similar work with similar experience who are recruited outside the Kickstart Scheme. DWP does not expect Participants to be paid less or less frequently than other new joiners in a similar position simply because the Participants are part of the Kickstart Scheme. The Grant is a contribution only and may not cover the full remuneration that the Grant Recipient should pay its Participants.”

Annex 3 (Payment Schedule) of the Conditions

We have added a new sentence to explain when payment will typically be received by the Grant Recipient once it has been processed by DWP:

“A Grant instalment will usually be received by the Grant Recipient up to 11 Working Days after it has been processed by DWP.”

We have added the following paragraph to clarify how the grant is calculated where a job spans two periods with different rates for National Minimum Wage/National Living Wage.

“Grant instalments are calculated on the basis of the National Minimum Wage or National Living Wage rates applicable at the time payment is made. Where a grant instalment is to be made at the end of a period that spans two different rates (for example, where as a result of the April uprating, a payment period spans 2020/21 rates and 2021/22 rates), that instalment will be calculated on the basis of the higher rates. For example, if a Participant starts work in a Kickstart Scheme job on 10 February 2021 and is 21 years old at the end of the six months of work, the Grant instalment after the first month of work should be based on 2020/21 rates, the next instalment (spanning 2020/21 and 2021/22 rates) should be based on 2021/22 rates because they are higher, and all further instalments of the Grant should be based on 2021/22 rates.”

We have amended the first explanatory note to (i) stress that the first grant instalment is not due if employment does not start and (ii) be clear that there is no entitlement to any of the next instalments where someone leaves without completing a full day of work.

“1. Leaving the Kickstart Scheme early

If, prior to the expiry of the intended six-month period, a Participant ceases or will cease to be part of the Kickstart Scheme during any month (for example, because the Participant leaves their Kickstart Scheme job or their employment is otherwise terminated), the Grant Recipient must notify DWP as per clause 7.2.1. This allows DWP to note that the Participant is no longer involved in the Kickstart Scheme and Eligible Expenditure with respect to that Participant is ending. A final grant instalment payment will be made for that Participant on the same schedule, and subject to the same conditions, described in this Annex 3. No further grant instalments will then be paid in respect of that Participant. Please note that:

• Neither the first instalment nor any subsequent instalments of the Grant will be due or payable for any Participant who does not start their Kickstart Scheme job (see note 5 below).
• If a Participant ceases their Kickstart Scheme job without completing a full day of work, then neither the 2nd instalment nor any subsequent instalments of the Grant will be due or payable to the Grant Recipient for that Participant. DWP determines that a full day of work has been completed if the RTI submission for a Participant shows that the Participant has been paid the Relevant Wage for at least five hours of work.
• By way of example:
• if a Participant starts their Kickstart Scheme job but leaves after three hours of work, the Grant Recipient will receive the first Grant instalment (£1500) but will not receive any subsequent instalments of the Grant;
• if a Participant starts their Kickstart Scheme job but leaves after 10 hours of work, the Grant Recipient will receive the first Grant instalment (£1500) and the second Grant Instalment (one sixth of the Total Grant minus the first instalment) but will not receive any subsequent instalments of the Grant.”

We have simplified the fourth explanatory note as follows:

“Eligible Expenditure

As per clause 5, Grant funding can only be used for Eligible Expenditure. Grant funding must be used for Funded Activities, benefitting the Participants, and must not be used for any Ineligible Expenditure or retained by the Grant Recipient.”

We have added a new explanatory note to stress that the first grant instalment must not be claimed before a young person has commenced their employment with the employer and provided examples of events that do not constitute employment having commenced:

“5. Starting employment

The Grant Recipient must not claim the first Grant instalment for any Participant until that Participant has commenced employment with the Grant Recipient. If the Grant Recipient receives the first Grant instalment for a Participant who has not commenced, or does not commence, employment with the Grant Recipient, the Grant Recipient must immediately repay the amount of the first instalment to DWP, unless otherwise instructed by DWP in writing.

A Participant has commenced employment with the Grant Recipient when the Participant has successfully started their first day of work with the Grant Recipient. The following is a non-exhaustive list of events that do not constitute a Participant having commenced employment with the Grant Recipient and which do not entitle the Grant Recipient to claim the first Grant instalment:

(a) induction activities that take place before the Participant’s actual start date;
(b) offering a Participant a contract of employment;
(c) pre-employment screening checks, such as a Disclosure and Barring Service (DBS) check;
(d) allocating a predicted future start date to a Participant; and
(e) the Participant’s start date arriving but the Participant does not start work.”

Annex 4 (Agreed Outputs) of the Conditions

In response to queries from employers and gateways, we have added two additional bullet points of outcomes we expect from the grant funding:

• “Provide regular, meaningful work for the Participants that will help them become more attractive to future employers and maximise their readiness to make a successful transition into long term employment. For work to be meaningful, the job must be equivalent to a job not funded by the Kickstart Scheme and must not involve significant classroom or online training.
• “Keep records and other evidence of how the above outputs are being achieved (for example, notes of positive feedback that the Participant receives, records of mock job interviews conducted) and provide details to DWP on request.”

Grant Offer Letter, Section 1 (Overview of the Grant)

In the section titled “Maximum Sum of Grant per Participant”, “£7564.51” is inserted as the new maximum amount and the previous figure deleted and the following paragraph is added at the end. This paragraph flags that Annex 3 of the Conditions contains an explanation of how the grant is calculated where National Minimum Wage/National Living Wage rates change:

“A more detailed description of how the Grant is calculated is set out in Annex 3 (Payment Schedule) of the Conditions. This includes how the Grant is calculated where National Minimum Wage/National Living Wage rates change during the course of a six-month Kickstart Scheme job.”

Grant Offer Letter, Section 1 (Overview of the Grant)

In the summary of the Payment Schedule, the following paragraph is added at the end. This paragraph underlines that the first grant instalment must not be claimed until employment has commenced and can be recovered if claimed too early:

“Please note: You must not in any circumstances claim the initial Grant payment for any Participant before that Participant has commenced employment with you. We may recover from you any initial payment that you claim before the Participant has successfully begun their first day of employment with you. Please see the notes in Annex 3 (Payment Schedule) of the Conditions for more information, including examples of when the initial payment cannot be claimed.”

Grant Offer Letter, Section 4 (Filling Vacancies & No Guarantee of Funding)

The following wording is added to the end of section 4.2 to clarify that recruitment activity by an employer does not determine who DWP will refer to the employer’s Kickstart vacancies:

“We will select the candidates to refer to your Kickstart Scheme vacancies at our sole discretion. Your own recruitment activity will not determine which candidates we refer to your Kickstart Scheme vacancies. We expect you to use reasonable endeavours to fill your Kickstart Scheme vacancies as quickly as possible but you are not otherwise obliged to accept the candidates we refer for those vacancies.”

2. Key updates to the Kickstart Scheme Grant Funding Agreement: Terms and Conditions for Gateways and Grant Offer Letter for Gateways

Clause 2 (Definitions and Interpretation) of the Conditions We have amended clause 2.2(5) as follows to reflect the end of the Brexit transition period:

“any reference which immediately before IP completion day (as defined in the European Union (Withdrawal) Act 2018 (EUWA)) was a reference to (as it has effect from time to time) any EU regulation, EU decision, EU tertiary legislation or provision of the EEA agreement (EU References) which forms part of domestic law by application of section 3 of the EUWA shall be read on and after IP completion day as a reference to the EU References as they form part of domestic law by virtue of section 3 of the EUWA as modified by domestic law from time to time;”

Clause 3 (Duration/Purpose of the Grant and Gateway Duties) of the Conditions

Clause 3.6.5 is amended as follows to clarify that the Grant Recipient must inform DWP if an Employer changes its constitution, legal form or ownership or is subject to any complaint or investigation by a regulatory body or the police:

“notify DWP if any of the circumstances in clauses 7.2, 7.4, 9.3, 13.5 or 22.12 of the Employer Agreement apply and take such action as agreed with DWP;”

A new clause 3.6.7 is added to underline that Kickstart gateways are responsible for checking that their Employers are able to support existing jobs and new vacancies that they want to add:

“ensure each Employer has the capacity and capability to support its existing Kickstart Scheme jobs and any additional jobs it wishes to be funded by the Grant. The Grant Recipient is responsible for checking that all existing and prospective Kickstart Scheme jobs to be funded under this Grant Agreement can be supported to the standards required by this Grant Agreement.”

We have added new clauses 3.7, 3.8 and 3.9 to clarify that (i) the maximum number of jobs stated in the Grant Offer Letter should not be exceeded without DWP’s permission and (ii) the same job should not be part of more than one grant agreement or application:

“3.7 The Grant Recipient must not, without the prior written consent of DWP, exceed the maximum number of employment opportunities to be funded as stated in the Grant Offer Letter and varied from time to time in accordance with this Grant Agreement.

3.8 The Grant Recipient will ensure that:

3.8.1 where the Grant Recipient is the employer, none of its jobs advertised or funded under this Grant Agreement are also part of another Kickstart Scheme grant agreement or application; and
3.8.2 each Employer is made aware that it must not advertise the same Kickstart Scheme job through (i) more than one gateway organisation or (ii) a gateway and its own grant agreement with DWP.
3.9 If DWP considers that any job under this Grant Agreement is also part of another Kickstart Scheme grant agreement or application, DWP may choose not to provide any Grant funding for that job under this Grant Agreement and may reduce the maximum number of employment opportunities to be funded under this Grant Agreement.”

Clause 4 (Payment of Grant) of the Conditions

We have amended clause 4.4 to stress that the Grant Recipient must not claim the first grant instalment for a Participant until employment has commenced. Clause 4.4 is replaced with the following:

“The Grant Recipient may request payment of the first Grant instalment once the Participant has started working commenced their employment with the Grant Recipient or Employer (see note 5 of Annex 3 for more detail on what this means). The Grant Recipient must not request payment of the first Grant instalment before the Participant has commenced employment with the Grant Recipient or Employer. The Grant Recipient will provide, or require the Employer to provide, any information or documentation prescribed by DWP from time to time to evidence that the Participant has started and continues in work with the Employer (or the Grant Recipient) as part of the Kickstart Scheme. Payment of the first Grant instalment will be made following receipt by DWP of a request for payment and confirmation to DWP’s satisfaction that the Participant has started employment with the Grant Recipient or the relevant Employer.”

Clause 5 (Eligible and Ineligible Expenditure) of the Conditions

In clause 5.9, we have added the words “(unless deemed to be eligible under clause 5.2 of these Conditions)” after “…include the following”.

Clause 15 (Intellectual Property Rights) of the Conditions

We have added the following to clause 15.2 to clarify that DWP does not require the Grant Recipient to license materials created for use in its or an Employer’s day-to-day activities outside the Kickstart Scheme:

“This licence excludes any materials created by the Grant Recipient or any Employer for use in its day-to-day activities outside the Kickstart Scheme.”

Clause 19 (Publicity) of the Conditions

We have added wording to clauses 19.6 and 19.7 to confirm the purposes for which Kickstart branding can be used, stress that the Grant Recipient and Employers must not harm the reputation and image of DWP or the Kickstart branding, and underline that the Grant Recipient needs DWP consent if it wants to allow a third party to use Kickstart branding. Clauses 19.6 and 19.7 are replaced by the following:

19.6 DWP consents to the Grant Recipient and the Employers using DWP’s name and Kickstart Branding to publicise the Grant and the Funded Activities, provided that:

19.6.1 the Grant Recipient’s and the Employers’ use of DWP’s name and Kickstart Branding does not in any way weaken or damage the reputation and image of DWP or the Kickstart Branding (including the goodwill associated with it); and
19.6.2 in using DWP’s name and Kickstart Branding, the Grant Recipient will comply, and will ensure the Employers comply, with all reasonable branding guidelines issued by DWP from time to time, including those available at https://www.gov.uk/government/publications/kickstart-scheme-employer-resources/kickstart-scheme-brand-guidelines.

19.7 No other rights under the Kickstart Branding are granted to the Grant Recipient. In particular, the Grant Recipient has no right to permit any Third Party (other than an Employer) to use the Kickstart Branding without DWP’s prior written consent. The Grant Recipient will be responsible for the acts and omissions of any Third Party (including any Employer) it permits to use the Kickstart Branding as if they were its own. The Grant Recipient will cease, and procure that any Third Parties (including require its Employers) to cease, all further use of the Kickstart Branding if requested to do so by DWP in writing.”

Clause 22 (Clawback, Events of Default and Termination) of the Conditions

The wording of clause 22.1.7 is replaced by the following:

“the Grant Recipient applies for, obtains or fails to declare Duplicate Funding;”

Clause 22.1.11(iii) is replaced by the following:

“transferred, assigned or novated the Grant Agreement or any Employer Agreement to any Third Party without DWP’s consent; or”

In clause 22.1.14, the following words are added at the end: “including through its application under Article 10 of the Northern Ireland Protocol”.

A new clause 22.1.15 is added as follows to reflect the application of international and domestic subsidy control rules:

“any court, tribunal or independent body or authority of competent jurisdiction requires any Grant paid to be recovered by reason of a breach of (i) the UK’s obligations under the Trade and Co-operation Agreement or any other applicable international agreement; or (ii) the terms of any UK subsidy control legislation;”

In clause 22.7, the following new sentence is added at the end to provide an example of where an Event of Default is incapable of remedy: “DWP may conclude an Event of Default is incapable of remedy where, for example, it is one of multiple Events of Default that have or may have occurred and which demonstrate (in DWP’s opinion) that the Grant Recipient is unwilling to comply, or unable to comply, with the terms and conditions of this Grant Agreement.”

Clause 23 (Dispute Resolution) of the Conditions

Clauses 23.1 and 23.2 are amended as follows to clarify that the dispute resolution procedure does not apply to the exercise of certain rights:

“23.1 The Parties will use all reasonable endeavours to negotiate in good faith, and settle amicably, any dispute that arises during the term of this Grant Agreement. This clause 23 does not apply to any dispute or complaint which relates to DWP’s right to withhold or withdraw funds, reduce the number of jobs or Employers to be funded, require remedial activity or terminate or any other rights exercised at DWP’s sole discretion or in DWP’s opinion.

23.2 All disputes shall be referred in the first instance to DWP’s Grant Manager and the Grant Recipient’s Kickstart Representative.”

Annex 1 (Definitions) of the Conditions

The definition of Change of Control is replaced by the following new definition. This change clarifies the application of the Change of Control provisions in the Grant Agreement:

“Change of Control means, in respect of the Grant Recipient or any person who Controls the Grant Recipient, any change of Control of that person. Control means the possession by a person, directly or indirectly, of the power to direct or cause the direction of the management and policies of the other person (whether through the ownership of voting shares, by contract or otherwise) and Controls shall be interpreted accordingly;”

The words “and any applicable implementing Law as amended from time to time” are deleted from the definition of Data Protection Legislation and the definition of Domestic Law is deleted in its entirety. These changes have been made as a result of the end of the Brexit transition period.

A new definition of Kickstart Branding is added as follows, reflecting the changes to clauses 19.6 and 19.7 described above:

“Kickstart Branding means the Kickstart and Kickstart Scheme names, the Kickstart Scheme logo and any registered or unregistered trade marks (including applications) owned by DWP in relation to any of them. It includes any future names or logos adopted by DWP in relation to the Kickstart Scheme;”

A new definition of Northern Ireland Protocol is added as follows, reflecting the changes to clause 22.1.14 described above:

“Northern Ireland Protocol means the Protocol on Ireland/Northern Ireland in the Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community;”

The definition of State Aid Law is deleted and replaced with the following, reflecting the end of the Brexit transition period:

“State Aid Law means the law embodied in Articles 107 – 109 of the Treaty on the Functioning of the European Union and any related legislation adopted by the Council, European Parliament and/or the Commission (including implementing legislation, decisions and communications) to the extent it applied or continues to apply at any time in the United Kingdom;”

A new definition of Trade and Cooperation Agreement is added as follows, reflecting the addition of clause 22.1.15 described above:

“Trade and Cooperation Agreement means the Trade and Cooperation Agreement between the European Union and the European Atomic Energy Community, of the one part, and the United Kingdom of Great Britain and Northern Ireland, of the other part (as that agreement is modified or supplemented from time to time in accordance with any provision of it or of any other future relationship agreement);”

Annex 2 (Funded Activities) of the Conditions

We have amended the final sentence of paragraph 3(e) for clarity. The changes are as follows:

“The Grant Recipient or Employer (as applicable) must meet its statutory duties in relation to employment rights and employer responsibilities in the workplace (for example, for health, safety and welfare) for all Kickstart Scheme Participants.”

We have amended paragraph 3(f) to underline that Kickstart jobs need to provide meaningful work for the young people and extensive time spent on training does not constitute a quality work experience.

“Employment opportunities should not require Participants to undertake extensive training (either classroom or online) before they begin the job or at any point during the six months. For example, if a significant part of the job involves completing a training course or watching training videos, this would not constitute meaningful work or be equivalent to a job not funded by the Kickstart Scheme.”

We have updated and expanded the “Please note” section to provide more detail on the nature of a Kickstart Scheme job. These changes have been made in response to questions from employers and gateways:

“Please note:

1. A Kickstart job is not an apprenticeship but a Participant may move to an apprenticeship whilst taking part in the Kickstart Scheme. Grant funding will cease once a Participant ceases to be involved in the Kickstart Scheme (for example, because the Participant has moved from a Kickstart Scheme job to an apprenticeship).

2. Once a Kickstart Scheme job is created, it can be taken up by a new Participant once the previous Participant has ceased to be employed as part of the Kickstart Scheme. A Kickstart Scheme job cannot be filled more than once by the same Participant.

3. DWP will only provide Grant funding for candidates referred to the Grant Recipient or an Employer by DWP. DWP selects the candidates to refer to the Kickstart Scheme vacancies offered by the Grant Recipient or an Employer at DWP’s sole discretion. Any recruitment activity by the Grant Recipient or an Employer will not determine which candidates DWP refers to these Kickstart Scheme vacancies.

4. The Grant Recipient will use reasonable endeavours to fill Kickstart Scheme vacancies as quickly as possible but neither the Grant Recipient nor any Employer is otherwise obliged to accept candidates referred by DWP for its vacancies. Grant funding will only be provided once the Grant Recipient or Employer has accepted a candidate referred by DWP.

5. All Kickstart Scheme jobs must provide regular, meaningful work for Participants, under the day-to-day direction and control of the Grant Recipient or an Employer, for six months. A job should not be designed to spread the six months of work over a longer period than six continuous months. For example, a job spread across seven months, with a one month break from work in the middle of it, will not be providing regular, meaningful work for the Participant. The Grant Recipient must notify DWP if any Participant is unable to carry out regular, meaningful work at any point during the six month Kickstart Scheme employment (as per clause 7.2.2).

6. DWP expects the Grant Recipient and its Employers to treat the Participants fairly and no less favourably than other staff members doing similar work with similar experience who are recruited outside the Kickstart Scheme. DWP does not expect Participants to be paid less or less frequently than other new joiners in a similar position simply because the Participants are part of the Kickstart Scheme. The Grant is a contribution only and may not cover the full remuneration that the Grant Recipient or any Employer should pay its Participants.”

Annex 3 (Payment Schedule) of the Conditions

We have added a new sentence to explain when payment will typically be received by the Grant Recipient once it has been processed by DWP:

“A Grant instalment will usually be received by the Grant Recipient up to 11 Working Days after it has been processed by DWP.”

We have added the following paragraph to clarify how the grant is calculated where a job spans two periods with different rates for National Minimum Wage/National Living Wage.

“Grant instalments are calculated on the basis of the National Minimum Wage or National Living Wage rates applicable at the time payment is made. Where a grant instalment is to be made at the end of a period that spans two different rates (for example, where as a result of the April uprating, a payment period spans 2020/21 rates and 2021/22 rates), that instalment will be calculated on the basis of the higher rates. For example, if a Participant starts work in a Kickstart Scheme job on 10 February 2021 and is 21 years old at the end of the six months of work, the Grant instalment after the first month of work should be based on 2020/21 rates, the next instalment (spanning 2020/21 and 2021/22 rates) should be based on 2021/22 rates because they are higher, and all further instalments of the Grant should be based on 2021/22 rates.”

We have amended the first explanatory note to (i) stress that the first grant instalment is not due if employment does not start and (ii) be clear that there is no entitlement to any of the six instalments that contribute towards wages where someone leaves without completing a full day of work.

“1. Leaving the Kickstart Scheme early

If, prior to the expiry of the intended six-month period, a Participant ceases or will cease to be employed by the Grant Recipient or an Employer as part of the Kickstart Scheme during any month (for example, because the Participant leaves their Kickstart Scheme job or has their employment terminated), the Grant Recipient must notify DWP as per clause 7.2.1. This allows DWP to note that the Participant is no longer involved in the Kickstart Scheme and Eligible Expenditure with respect to that Participant is ending. A final grant instalment payment will be made for that Participant on the same schedule, and subject to the same conditions, described in this Annex 3. No further grant instalments will then be paid in respect of that Participant. Please note that:

• Neither the first instalment nor any subsequent instalments of the Grant will be due or payable for any Participant who does not start their Kickstart Scheme job (see note 5 below).
• If a Participant ceases their Kickstart Scheme job without completing a full day of work, then neither the 2nd instalment nor any subsequent instalments of the Grant will be due or payable to the Grant Recipient for that Participant. DWP determines that a full day of work has been completed if the RTI submission for a Participant shows that the Participant has been paid the Relevant Wage for at least five hours of work.
• By way of example:
  • if a Participant starts their Kickstart Scheme job but leaves after three hours of work, the Grant Recipient will receive the first Grant instalment (£1860 or £1500) but will not receive any subsequent instalments of the Grant;
  • if a Participant starts their Kickstart Scheme job but leaves after 10 hours of work, the Grant Recipient will receive the first Grant instalment (£1860 or £1500) and the second Grant instalment (one sixth of the Total Grant minus the first instalment) but will not receive any subsequent instalments of the Grant.”

We have simplified the fourth explanatory note as follows:

“Eligible Expenditure

As per clause 5, Grant funding can only be used for Eligible Expenditure. The Grant funding must be used for Funded Activities, benefitting the Participants, Ineligible Expenditure or retained by the Grant Recipient or any Employer.”

We have added a new explanatory note to stress that the first grant instalment must not be claimed before a young person has commenced their Kickstart Scheme employment and provided examples of events that do not constitute employment having commenced:

“5. Starting employment

The Grant Recipient must not claim the first Grant instalment for any Participant until that Participant has commenced employment with the Grant Recipient or an Employer. If the Grant Recipient receives the first Grant instalment for a Participant who has not commenced, or does not commence, employment with the Grant Recipient or an Employer, the Grant Recipient must immediately repay the amount of the first instalment to DWP, unless otherwise instructed by DWP in writing.

A Participant has commenced employment with the Grant Recipient or an Employer when the Participant has successfully started their first day of work with the Grant Recipient or that Employer. The following is a non-exhaustive list of events that do not constitute a Participant having commenced employment with the Grant Recipient or an Employer and which do not entitle the Grant Recipient to claim the first Grant instalment:

(a) induction activities that take place before the Participant’s actual start date;
(b) offering a Participant a contract of employment;
(c) pre-employment screening checks, such as a Disclosure and Barring Service (DBS) check;
(d) allocating a predicted future start date to a Participant; and
(e) the Participant’s start date arriving but the Participant does not start work.”

Annex 4 (Agreed Outputs) of the Conditions

In response to queries from employers and gateways, we have added two additional bullet points of outcomes we expect from the grant funding:

• “Provide regular, meaningful work for the Participants that will help them become more attractive to future employers and maximise their readiness to make a successful transition into long term employment. For work to be meaningful, the job must be equivalent to a job not funded by the Kickstart Scheme and must not involve significant classroom or online training.
• Keep records and other evidence (and require its Employers to do the same) of how the above outputs are being achieved (for example, notes of positive feedback that the Participant receives, records of mock job interviews conducted) and provide details to DWP on request.”

Grant Offer Letter, Section 1 (Overview of the Grant)

In the section titled “Maximum Sum of Grant per Participant”, “£7924.51” is inserted as the new maximum amount and the previous figure deleted and the following paragraph is added at the end. This paragraph flags that Annex 3 of the Conditions contains an explanation of how the grant is calculated where National Minimum Wage/National Living Wage rates change:

“A more detailed description of how the Grant is calculated is set out in Annex 3 (Payment Schedule) of the Conditions. This includes how the Grant is calculated where National Minimum Wage/National Living Wage rates change during the course of a six-month Kickstart Scheme job.”

Grant Offer Letter, Section 1 (Overview of the Grant)

In the summary of the Payment Schedule, the following new note (3) is added at the end. This note underlines that the first grant instalment must not be claimed until employment has commenced and can be recovered if claimed too early:

“(3) You must not in any circumstances claim the initial Grant payment for any Participant before that Participant has commenced employment with you or the Employer. We may recover from you any initial payment that you claim before the Participant has successfully begun their first day of employment with you or the Employer. Please see the notes in Annex 3 (Payment Schedule) of the Conditions for more information, including examples of when the initial payment cannot be claimed.”

Grant Offer Letter, Section 5 (Filling Vacancies & No Guarantee of Funding)

The following wording is added to the end of section 5.2 to clarify that recruitment activity by the gateway or an employer does not determine who DWP will refer to Kickstart vacancies:

“We will select the candidates to refer to the Kickstart Scheme vacancies offered by you and/or your Employers at our sole discretion. Recruitment activity by you or your Employers will not determine which candidates we refer to the Kickstart Scheme vacancies. We expect you and your Employers to use reasonable endeavours to fill your Kickstart Scheme vacancies as quickly as possible but neither you nor your Employers are otherwise obliged to accept the candidates we refer for those vacancies.”

Grant Offer Letter, Attachment 2 (Employer Agreement)

Similar changes are made to the Funding Letter that the Gateway provides to its Employers:

The following is added at the end of the Payment Schedule summary: “Please note: You must not in any circumstances claim the initial payment for any Participant before that Participant has commenced employment with you. DWP may recover from us (and we may recover from you) any initial payment that you claim before the Participant has successfully begun their first day of employment with you. Please see the notes in Annex 3 (Payment Schedule) of the Conditions for more information, including examples of when the initial payment cannot be claimed.”

The following wording is added to the end of section 4.2: “DWP will select the candidates to refer to your Kickstart Scheme vacancies at its sole discretion. Your own recruitment activity will not determine which candidates DWP refers to your Kickstart Scheme vacancies. DWP expects you to use reasonable endeavours to fill your Kickstart Scheme vacancies as quickly as possible but you are not otherwise obliged to accept the candidates DWP refers for those vacancies.”

3. Key updates to Kickstart Scheme Terms and Conditions for Gateways and Employers

Clause 3 (Duration/Purpose of the Funding) of the Conditions

Clause 3.4 is amended to clarify that variations to the grant provided to the Gateway may mean variations to the funding that the Gateway passes through to the Employer from the grant.

“3.4 The Gateway and the Employer each acknowledges and agrees that:

3.1.1. the provision of the Grant is subject to the proper discharge of DWP’s duties, and the exercise of its discretions, as a Crown Body; and
3.1.2. DWP may at its entire discretion vary the Grant (including the Funding) and the terms and conditions on which the Grant (including the Funding) is provided (for example, by increasing or decreasing the Grant or removing Funded Activities from the Grant) for any reason.

The Gateway may vary the Funding or the terms and conditions on which the Funding is provided as a result of variations made to the Grant by DWP. The Gateway will notify the Employer in writing of any such variations.”

We have added new clauses 3.5 and 3.6 to clarify that (i) the maximum number of jobs stated in the Funding Letter should not be exceeded without the Gateway’s permission and (ii) the same job should not be part of more than one grant agreement or application:

“3.5 The Employer must not, without the prior written consent of the Gateway, exceed the maximum number of employment opportunities to be funded as stated in the Funding Letter and varied from time to time in accordance with this Kickstart Employer Agreement.

3.6 The Employer will ensure that none of the jobs advertised or funded under this Kickstart Employer Agreement are also part of another Kickstart Scheme grant agreement or application. The Employer acknowledges and agrees that DWP may choose not to provide any Grant funding for any job that it considers to be part of another Kickstart Scheme grant agreement or application and that the maximum number of employment opportunities to be funded under this Kickstart Employer Agreement may be reduced accordingly.”

Clause 4 (Payment) of the Conditions

We have amended clause 4.4 to stress that the Employer must not claim the first funding instalment for a Participant until employment has commenced. Clause 4.4 is replaced with the following:

“The Employer may request payment of the first Funding instalment once the Participant has commenced their employment with the Employer (see note 5 of Annex 3 for more detail on what this means). The Employer must not request payment of the first Funding instalment before the Participant has commenced employment with the Employer. The Employer will provide any information or documentation requested by the Gateway from time to time to evidence that the Participant has started and continues in work with the Employer as part of the Kickstart Scheme. The Employer acknowledges that DWP will not release Grant funding for the first Funding instalment until DWP is satisfied that the Participant has started employment with the Employer.”

Clause 5 (Eligible and Ineligible Expenditure) of the Conditions

In clause 5.9, we have added the words “(unless deemed to be eligible under clause 5.2 of these Conditions)” after “…include the following”.

Clause 15 (Intellectual Property Rights) of the Conditions

We have added the following to clause 15.2 to clarify that the Employer is not required to license materials created for use in its day-to-day activities outside the Kickstart Scheme:

“This licence excludes any materials created by the Employer or its Representatives for use in the Employer’s day-to-day activities outside the Kickstart Scheme.”

Clause 19 (Publicity) of the Conditions

We have added wording to clauses 19.6 and 19.7 to confirm the purposes for which Kickstart branding can be used, stress that the Employer must not harm the reputation and image of DWP or the Kickstart branding, and underline that DWP consent is needed for a third party to use Kickstart branding. Clauses 19.6 and 19.7 are replaced by the following:

19.6 The Employer may use the Gateway’s name, DWP’s name and the Kickstart Branding to publicise the Funding and the Funded Activities, provided that:

19.6.1 Its use of the Gateway’s name, DWP’s name and the Kickstart Branding does not in any way weaken or damage the reputation and image of the Gateway, DWP or the Kickstart Branding (including the goodwill associated with it); and
19.6.2 in using the Gateway’s or DWP’s name and Kickstart Branding, the Employer will comply with all reasonable branding guidelines issued by the Gateway or DWP from time to time, including those available at https://www.gov.uk/government/publications/kickstart-scheme-employer-resources/kickstart-scheme-brand-guidelines.

19.7 No other rights under the Kickstart Branding are granted to the Employer. In particular, the Employer has no right to permit any Third Party (including any affiliated or associated person) to use the Kickstart Branding without DWP’s prior written consent (requested via the Gateway). The Employer will be responsible for the acts and omissions of any Third Party it permits to use the Kickstart Branding as if they were its own. The Employer will cease, and will procure that any Third Parties permitted to use the Kickstart Branding cease, all further use of the Kickstart Branding if requested to do so by DWP in writing.”

Clause 22 (Clawback, Events of Default and Termination) of the Conditions

The wording of clause 22.1.7 is replaced by the following:

“the Employer applies for, obtains or fails to declare Duplicate Funding;”

In clause 22.1.14, the following words are added at the end: “including through its application under Article 10 of the Northern Ireland Protocol”.

A new clause 22.1.15 is added as follows to reflect the application of international and domestic subsidy control rules:

“any court, tribunal or independent body or authority of competent jurisdiction requires any Funding paid to be recovered by reason of a breach of (i) the UK’s obligations under the Trade and Co-operation Agreement or any other applicable international agreement; or (ii) the terms of any UK subsidy control legislation;”

In clause 22.6, the following new sentence is added at the end to provide an example of where an Event of Default is incapable of remedy: “The Gateway may conclude an Event of Default is incapable of remedy where, for example, it is one of multiple Events of Default that have or may have occurred and which demonstrate (in the Gateway’s opinion) that the Employer is unwilling to comply, or unable to comply, with the terms and conditions of this Kickstart Employer Agreement.”

Clause 23 (Dispute Resolution) of the Conditions

Clauses 23.1 and 23.2 are amended as follows to clarify that the dispute resolution procedure does not apply to the exercise of certain rights:

“23.1 The Parties will use all reasonable endeavours to negotiate in good faith, and settle amicably, any dispute that arises during the term of this Kickstart Employer Agreement. This clause 23 does not apply to any dispute or complaint which relates to DWP’s or the Gateway’s right to withhold or withdraw funds, reduce the number of jobs to be funded, require remedial activity or terminate or any other rights exercised at DWP’s or the Gateway’s sole discretion or in DWP’s or the Gateway’s opinion.

23.2 All disputes shall be referred in the first instance to the Gateway Representative and the Employer Representative.”

Annex 1 (Definitions) of the Conditions

The definition of Change of Control is replaced by the following new definition. This change clarifies the application of the Change of Control provisions in the Kickstart Employer Agreement:

“Change of Control means, in respect of the Employer or any person who Controls the Employer, any change of Control of that person. Control means the possession by a person, directly or indirectly, of the power to direct or cause the direction of the management and policies of the other person (whether through the ownership of voting shares, by contract or otherwise) and Controls shall be interpreted accordingly;”

The following changes have been made as a result of the end of the Brexit transition period:

• the words “and any applicable implementing Law as amended from time to time” are deleted from the definition of Data Protection Legislation;
• the definition of Domestic Law is deleted in its entirety; and
• the definition of GDPR is replaced by the following: “General Data Protection Regulation and GDPR means the General Data Protection Regulation (EU) 2016/679 as it forms part of domestic law by virtue of section 3 of the European Union (Withdrawal) Act 2018 and as modified by domestic law from time to time;”

A new definition of Kickstart Branding is added as follows, reflecting the changes to clauses 19.6 and 19.7 described above:

“Kickstart Branding means the Kickstart and Kickstart Scheme names, the Kickstart Scheme logo and any registered or unregistered trade marks (including applications) owned by DWP in relation to any of them. It includes any future names or logos adopted by DWP in relation to the Kickstart Scheme;”

A new definition of Northern Ireland Protocol is added as follows, reflecting the changes to clause 22.1.14 described above:

“Northern Ireland Protocol means the Protocol on Ireland/Northern Ireland in the Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community;”

The definition of State Aid Law is deleted and replaced with the following, reflecting the end of the Brexit transition period:

“State Aid Law means the law embodied in Articles 107 – 109 of the Treaty on the Functioning of the European Union and any related legislation adopted by the Council, European Parliament and/or the Commission (including implementing legislation, decisions and communications) to the extent it applied or continues to apply at any time in the United Kingdom;”

A new definition of Trade and Cooperation Agreement is added as follows, reflecting the addition of clause 22.1.15 described above:

“Trade and Cooperation Agreement means the Trade and Cooperation Agreement between the European Union and the European Atomic Energy Community, of the one part, and the United Kingdom of Great Britain and Northern Ireland, of the other part (as that agreement is modified or supplemented from time to time in accordance with any provision of it or of any other future relationship agreement);”

Annex 2 (Funded Activities) of the Conditions

We have amended the final sentence of paragraph 3(d) for clarity. The changes are as follows:

“The Employer must meet its statutory duties in relation to covering employment rights and employer responsibilities in the workplace (for example, for health, safety and welfare) for all Kickstart Scheme Participants.”

We have amended paragraph 3(e) to underline that Kickstart jobs need to provide meaningful work for the young people and extensive time spent on training does not constitute a quality work experience.

“Employment opportunities should not require Participants to undertake extensive training (either classroom or online) before they begin the job or at any point during the six months. For example, if a significant part of the job involves completing a training course or watching training videos, this would not constitute meaningful work or be equivalent to a job not funded by the Kickstart Scheme.”

We have updated and expanded the “Please note” section to provide more detail on the nature of a Kickstart Scheme job. These changes have been made in response to questions from employers and gateways:

“Please note:

1. A Kickstart job is not an apprenticeship but a Participant may move to an apprenticeship whilst taking part in the Kickstart Scheme. Funding will cease once a Participant ceases to be involved in the Kickstart Scheme (for example, because the Participant has moved from a Kickstart Scheme job to an apprenticeship).

2. Once a Kickstart Scheme job is created, it can be taken up by a new Participant once the previous Participant has ceased to be employed as part of the Kickstart Scheme. A Kickstart Scheme job cannot be filled more than once by the same Participant.

3. The Employer acknowledges and agrees that DWP will only provide Grant funding for candidates referred to the Employer by DWP. DWP selects the candidates to refer to the Employer’s Kickstart Scheme vacancies at DWP’s sole discretion. Any recruitment activity by the Employer will not determine which candidates DWP refers to the Employer’s vacancies.

4. The Employer will use reasonable endeavours to fill its vacancies as quickly as possible but is not otherwise obliged to accept candidates referred by DWP for its vacancies. Grant funding will only be provided once the Employer has accepted a candidate referred by DWP.

5. All Kickstart Scheme jobs must provide regular, meaningful work for Participants for six months. A job should not be designed to spread the six months of work over a longer period than six continuous months. For example, a job spread across seven months, with a one month break from work in the middle of it, will not be providing regular, meaningful work for the Participant. The Employer must notify the Gateway if any Participant is unable to carry out regular, meaningful work at any point during the six month Kickstart Scheme employment (as per clause 7.2.2).

6. The Employer must treat the Participants fairly and no less favourably than other staff members doing similar work with similar experience who are recruited outside the Kickstart Scheme. DWP does not expect Participants to be paid less or less frequently than other new joiners in a similar position simply because the Participants are part of the Kickstart Scheme. The Funding is a contribution only and may not cover the full remuneration that the Employer should pay its Participants.”

Annex 3 (Payment Schedule) of the Conditions

We have added a new sentence to explain when payment will typically be received by the Gateway once it has been processed by DWP. The Gateway can then pass through the relevant amounts to the Employer:

“A Grant instalment will usually be received by the Gateway up to 11 Working Days after it has been processed by DWP.”

We have added the following paragraph to clarify how the DWP grant is calculated where a job spans two periods with different rates for National Minimum Wage/National Living Wage.

“DWP Grant payments are calculated on the basis of the National Minimum Wage or National Living Wage rates applicable at the time payment is made. Where a Grant payment is to be made at the end of a period that spans two different rates (for example, where as a result of the April uprating, a payment period spans 2020/21 rates and 2021/22 rates), that payment will be calculated on the basis of the higher rates. For example, if a Participant starts work in a Kickstart Scheme job on 10 February 2021 and is 21 years old at the end of the six months of work, the Grant payment after the first month of work should be based on 2020/21 rates, the next payment (spanning 2020/21 and 2021/22 rates) should be based on 2021/22 rates because they are higher, and all further payments should be based on 2021/22 rates.”

We have amended the first explanatory note to (i) stress that the first funding instalment is not due if employment does not start and (ii) be clear that there is no entitlement to any of the six instalments that contribute towards wages where someone leaves without completing a full day of work.

“1. Leaving the Kickstart Scheme early

If, prior to the expiry of the intended six-month period, a Participant ceases or will cease to be employed by the Employer as part of the Kickstart Scheme during any month (for example, because the Participant leaves their job or has their employment terminated), the Employer must notify the Gateway (as per clause 7.2.1) who will then notify DWP. This allows DWP to note that the Participant is no longer involved in the Kickstart Scheme and Eligible Expenditure with respect to that Participant is ending. A final funding instalment will be made paid for that Participant on the same schedule, and subject to the same conditions, described in this Annex 3. No further funding instalments will then be paid in respect of that Participant. Please note that:

• Neither the first instalment nor any subsequent instalments of the Funding will be due or payable for any Participant who does not start their Kickstart Scheme job (see note 5 below).
• If a Participant ceases their Kickstart Scheme job without completing a full day of work, then neither the 2nd instalment nor any subsequent instalments of the Funding will be due or payable to the Employer for that Participant. DWP determines that a full day of work has been completed if the RTI submission for a Participant shows that the Participant has been paid the Relevant Wage for at least five hours of work.
• By way of example:
  • if a Participant starts their Kickstart Scheme job but leaves after three hours of work, the Employer will receive the first Funding instalment but will not receive any subsequent instalments;
  • if a Participant starts their Kickstart Scheme job but leaves after 10 hours of work, the Employer will receive the first Funding instalment and the second Funding instalment (one sixth of the Total Funding minus the first instalment) but will not receive any subsequent instalments.”

We have simplified the fourth explanatory note as follows:

“ Eligible Expenditure

As per clause 5, Funding can only be used for Eligible Expenditure. The Funding must be used for Funded Activities, benefitting the Participants, and must not be used for any Ineligible Expenditure or retained by the Employer.”

We have added a new explanatory note to stress that the first funding instalment must not be claimed before a young person has commenced their Kickstart Scheme employment and provided examples of events that do not constitute employment having commenced:

“5. Starting employment

The Employer must not claim the first Funding instalment for any Participant until that Participant has commenced employment with the Employer. If the Employer receives the first Funding instalment for a Participant who has not commenced, or does not commence, employment with the Employer, the Employer must immediately repay the amount of the first instalment to the Gateway, unless otherwise instructed by the Gateway in writing.

A Participant has commenced employment with the Employer when the Participant has successfully started their first day of work with the Employer. The following is a non-exhaustive list of events that do not constitute a Participant having commenced employment with the Employer and which do not entitle the Employer to claim the first Funding instalment:

(a) induction activities that take place before the Participant’s actual start date;
(b) offering a Participant a contract of employment;
(c) pre-employment screening checks, such as a Disclosure and Barring Service (DBS) check;
(d) allocating a predicted future start date to a Participant; and
(e) the Participant’s start date arriving but the Participant does not start work.”

Annex 4 (Agreed Outputs) of the Conditions

In response to queries from employers and gateways, we have added two additional bullet points of outcomes we expect from the grant funding:

• “Provide regular, meaningful work for the Participants that will help them become more attractive to future employers and maximise their readiness to make a successful transition into long term employment. For work to be meaningful, the job must be equivalent to a job not funded by the Kickstart Scheme and must not involve significant classroom or online training.
• “Keep records and other evidence of how the above outputs are being achieved (for example, notes of positive feedback that the Participant receives, records of mock job interviews conducted) and provide details to the Gateway or DWP on request.”