The economic repercussions of the COVID-19 pandemic have obviously been disastrous. Government measures such as the furlough scheme have gone a long way to mitigating these adverse effects. Nevertheless, unemployment will inevitably rise as it has across the globe. COVID has been particularly disruptive for young people. There is talk of a ‘lost generation’, who’s immediate job prospects have been ruined by the pandemic and ensuing economic collapse. Whilst overall unemployment has remained low at just 4%, it has risen to 13% among 16-24-year-olds. The UK Government has responded by launching the Kickstart scheme which aims to create thousands of work placements specifically for young people.
Under the scheme, announced by Chancellor Rishi Sunak as part of his ‘Plan for Jobs’, employers can offer people aged 16-24, who are claiming Universal Credit, a work placement lasting up to six months. The Government will fully fund each job, paying 100% of the National Minimum Wage, National Insurance and pension contributions for 25 hours a week. Employers will be able to top up this wage, while the Government will also fund support and training, as well as helping pay for uniforms and other set-up costs.
Although initially designed for larger employers, the Government recently opened it up to smaller firms after consultation with the Federation of Small Businesses. According to FSB Chairman Mike Cherry: 'Small businesses are the biggest private employer in Britain and are proven to offer more employment opportunities to those furthest from work.' Scottish Secretary, Alister Jack also welcomed the scheme and urged Scottish employers to take the opportunity to help young people into successful careers.
Because the minority ethnic community is younger than the rest of society, they will see an even greater benefit. Black and Asian people are ten years younger than the average, and this trend is even more pronounced among those from a mixed ethnic background. The average age of a mixed-race person in the UK is just 18, precisely the generation bracket that the Kickstart scheme is meant to help.
Meanwhile, the SNP have been condemned for failing to utilise the Scottish Welfare Fund. The fund was established for the express purpose of relieving the burden of unemployment and poverty. Yet a report by the Poverty and Inequality Commission found that only 15% of the fund had been dispensed to local authorities.
Overall, it is clear that the UK Government recognises the plight of young people in this difficult time. The Kickstart scheme goes above and beyond the bare minimum in seeking to create high skill jobs that will last long into the future. The Scottish Government, on the other hand, has squandered resources and mismanaged the entire crisis.