My Lords, I have added my name to Amendment 62 from the noble Lord, Lord Storey, and I seem to have added my speech to his as well, because I very much echo what he said. I was involved in delivering a rather similar previous scheme, the Future Jobs Fund, to young unemployed Londoners. Based on that, I entirely agree with the noble Lord that Kickstart has the potential to become a really valuable programme. I emphasise the word “potential” because I do not think it has got there yet, but it offers substantial benefits to the young participants it focuses on and to the employers who take them on.
For the participants—most, if not all, of whom are at risk of long-term unemployment—six months is long enough for them to become acclimatised to working life and to develop the employability skills they need for their Kickstart placement and for future jobs. The employers can fill short-term vacancies at a low cost, which might even lead to some Kickstarters being taken into permanent roles at the end of the placement, having proved their capability and worth.
Importantly, the scheme also recognises the need for many Kickstarters to receive extra support and training when they start by providing £1,500 for so-called wrap- around support, which is much needed for those who not only are new to the world of work but might often come from chaotic living circumstances. We used to have to send taxis to pick up some of ours to take them to their work, until they realised that they had to be up and dressed at a certain time in order to be there.
However, despite its excellent intentions, the scheme seems to be falling short of expectations, with only about two-fifths of available Kickstart jobs having been taken up by September, including in sectors heavily hit by the pandemic and now much in need of extra staff, such as hospitality, travel, retail and care. Many of the reasons for this disappointing performance, as described by the noble Lord, Lord Storey, sound rather familiar to me, including delays, bureaucracy and complexity. It can take several weeks for a business, and indeed the specific jobs within that business, to be approved for Kickstart; only then does the rather unreliable process of identifying and recruiting candidates start. These must be referred by jobcentre work coaches, and it might take considerable time for them to come up with enough suitable candidates for employers to interview and recruit.
Again echoing the noble Lord, small businesses in particular, many of which could and do offer highly worthwhile Kickstart places, are often put off by the time, effort and bureaucracy involved. They are no longer required to use gateway providers to get involved in the scheme, but many of them continue to do so to reduce the burden on themselves of the complex administration involved.
It also seems that Kickstart is not as well integrated with other skills programmes, such as the apprenticeships programme, as it could be. Ideally, every successfully completed Kickstart placement should lead to clear pathways to further development whenever possible, including one or more apprenticeship options.
It would indeed be a pity if, just as some of these issues with Kickstart are beginning to be ironed out, and with numbers and outcomes picking up momentum, the scheme came to an end on 31 December—what I thought was its current cut-off date of, but it sounds as if that has possibly been extended. The noble Lord’s amendment would require the Secretary of State to review the scheme’s operation and consider whether its lifetime should be extended, with or without further modifications; for example, relating to eligibility and the link to universal credit. Surely such a review should be seen as an absolute necessity to learn the lessons of the scheme so far and consider whether or how it could be built on or improved.