PARLIAMENTARY WRITTEN QUESTION
Employment Schemes: Young People (28 August 2020)

To ask the Secretary of State for Work and Pensions, whether the Government expects a return to the Exchequer from the (a) implementation of the Kickstart Scheme and (b) expansion of existing work placement schemes.

Asked by:
Jonathan Reynolds (Labour)

A) The aim of Kickstart is to provide good quality jobs for young people most at risk of becoming long-term unemployed and suffering potential scarring effects. As part of delivering the programme we will manage programme performance to check that we are managing public money effectively to provide the greatest possible impact for all participants, employers and exchequer.

An evaluation of Future Jobs Fund demonstrated that over a sufficient timescale this kind of scheme could return a positive value.

B) In July, the Chancellor announced an expansion of sector-based work academies, which provide pre-employment training, work experience and a guaranteed job interview linked to a genuine job vacancy. A return to Exchequer is expected: an impact analysis published in 2016 showed that 19- to 24-year-olds who took part in a sector-based work academy spent on average 29 days less on benefits and 50 days longer in employment in the 18 months following their placement; for those who undertook all three elements these figures were 38 days and 66 days respectively. Analysis also showed each sector-based work academy placement is estimated to have a net benefit to the Exchequer of £100 and an estimated financial benefit to each participant of £1,950. Results suggest the impact extends beyond the 18 months tracked in the study.

https://www.gov.uk/government/publications/sector-based-work-academies-a-quantitative-impact-assessment

Answered by:
Mims Davies (Conservative)
8 September 2020