by Ian Fishwick

There are some excellent statistics on UK businesses. I sometimes wonder whether Government policymakers read them. The new KICKSTART Scheme aims to give 250,000 16-24 year-olds on universal credit, 6-months’ work. Government pays National Minimum Wage for 25 hours/week for 6 months. The employer gets £1500 to set up the scheme.

What’s the problem?

A company must create at least 30 new jobs. SME’s employ 60% of the workforce and none are big enough to create 30+ new jobs.

In 2019, UK businesses employed 27.5m people:

· 250+ staff – 7,700 companies, 10.9 million jobs (40% of workforce)
· 50-249 staff – 35,585 companies, 3.5m jobs (13%)
· 2-49 staff – 1.36m companies, 8.4m jobs (30%)
· 1 person companies – 4.6m jobs (17%)

Only 7,700 large companies can realistically use this scheme.

Government suggests #SMEs can combine to offer 30 #jobs. When SMEs are struggling to cope with Covid, the last thing they will do is seek to create consortiums, to employ a few people cheaply. 

For details of the scheme, visit https://www.gov.uk/government/publications/business-population-estimates-2019/business-population-estimates-for-the-uk-and-regions-2019-statistical-release-html#trends-in-the-business-population

Post expires at 9:57am on Sunday March 7th, 2021