Council urges local firms to sign up to ‘Kickstarter’ scheme to get young people on Universal Credit into work

The Conservative administration voted through a motion from cabinet member Councillor James Hill, but it did not win support from large numbers of opposition councillors – who questioned the need for a motion in the first place from the ruling party and echoed concerns from some businesses about the capacity to hire them.

The motion, voted through on Monday September 14 read: “This council supports the Government’s ‘Kickstarter’ scheme, helping create jobs for young people in Northampton, putting them at the heart of the town’s economic revival from the COVID-19 pandemic.

“We call upon local businesses to sign up to providing quality, six-month, subsidised work placements for those aged 16-24 on Universal Credit, helping give them on-the-job training and experience to launch them into a career.

“We cannot allow young people to be left behind as a result of the pandemic, and schemes like this will be vital for creating jobs and giving young people the skills to access them. We encourage local employers to sign up today.”

The scheme was launched by Chancellor of the Exchequer, Rishi Sunak, in July to help mitigate some of the unemployment affects the pandemic was having.

Proposing his motion, Councillor Hill said: “COVID-19 and the lockdown has had a devastating effect on the economy and unemployment. We know from figures that those aged 16-24 have been most affected by this in terms of jobs and new opportunities. 30 per cent of 18-24 year olds have been furloughed. So I’m glad to see the Government launch this scheme to support this, and we should support it in any way we can.”

But Labour leader Danielle Stone was confused as to why the motion had been brought before councillors. She said: “With this motion, the administration demonstrates its continued failure to recognise its role as the governing body in this town. It doesn’t need to bring motions to this council, it needs to bring reports or strategy papers about what it intends to do. It’s not for this council to tell businesses what to do, it’s for this council to lead from the front.”

She also alluded to a number of concerns raised by small businesses. For each ‘Kickstarter’ job, the Government will cover the cost of 25 hours’ work a week at the National Minimum Wage. But it was reported in the Financial Times earlier this month that it was disadvantaging smaller firms as they were unable to apply directly for the funds if they were taking on fewer than 30 young people.

Some business leaders have said that the restrictive rules on the number of places means companies either have to club together if they want to get the 30 posts, or work with an organisation such as the local Chamber of Commerce. This was risking putting some companies off applying.

Councillor Stone continued: “This programme requires participating employers to take on 30 young people either as a sole employer or as part of a consortium. They’re being asked to take on the people at the most risk of being unemployed. Businesses I have spoken to have told me they don’t have the capacity to do this. Thirty is too many for a start, but the biggest worry is about the lack of infrastructure. I’ve worked with young people all my life and I know that you have to put the infrastructure in for recruitment, retention and lots of other support needs.

“If you bring us a strategy paper we would support this. But this motion is using young people as a political football and it’s unworthy of this council. I ask you to withdraw it. If not, my group will be abstaining.”

But Councillor Hill responded: “Obviously I’m disappointed you won’t support this. I think there’s a clear call to action here. The idea that only opposition councillors can propose motions is ludicrous, any councillors can do so. I think this is a good motion and highlights the fact that the council can get involved and support a good scheme which we know is needed.”

The vote was eventually passed, with 19 Conservative councillors and one Liberal Democrat – Brian Markham – voting in favour. Thirteen councillors from Labour and the Lib Dems abstained, as did the Conservative Mayor – a common tradition amongst Mayors. A sole Labour councillor, Arthur McCutcheon, voted against the motion.