Rishi Sunak's flagship Covid back-to-work scheme will support 82,000 fewer young Brits than hoped.
A scathing report by MPs today said “early delivery was chaotic” as the Kickstart programme launched “very quickly but at the expense of clear guidance and basic management information”.
The scheme - launched with fanfare by the Chancellor and run by the Department for Work and Pensions - aimed to help 250,000 people into work placements.
But the DWP now predicts it will help 168,000, despite the end of the scheme being delayed by three months to March this year.
It is also expected to cost only £1.26bn out of its original £1.9bn budget.
The Public Accounts Committee concluded: “Many employers have been frustrated at the slow progress in finding suitable people to fill the Kickstart vacancies they have created.”
Kickstart pays firms £1,500 to offer six-month work placements to 16-24 year olds on Universal Credit.
In return, the state covers 100% of the minimum wage for 25 hours a week, which firms can top up.
But today’s report said the DWP does not know how firms are using the £1,500 grants.
It added the DWP doesn’t know if the right young people are being moved into Kickstart jobs.
Government officials blamed extra lockdowns, the furlough extension and other factors for the lower-than-expected take-up of the scheme.
But today’s report said the DWP lacks data on how long it takes to fill individual Kickstart jobs.
It accused the government of “a disappointing lack of curiosity about how the scheme is actually working for employers and the young people that the scheme is meant to help.”
Dame Meg Hillier, Chair of the Public Accounts Committee, said: “The department simply has no idea whether this scheme was worth the money, not least because it has little idea what was delivered for it."
A Government spokesperson said: “Kickstart has categorically delivered, giving more than 130,000 young people opportunities to work, earn and improve their prospects. It responded to extraordinary circumstances at unprecedented pace, as part of the wider Plan for Jobs which has defied forecasts of unemployment rising to 12 per cent – the headline rate is actually 4.1%. We will consider the PAC’s conclusions as we continue our mission to get people into work so they can take home more money.”
