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Summary

Recruitment Subsidy

Summary:

This is a scheme where local authorities can provide advice. It applies nationally.

What is it and who is it aimed at?

The recruitment subsidy is an incentive for employers to recruit people who have been out of work for over six months. It is open to all employers, who can claim for every eligible person that they recruit. Further to payment for recruitment, employers can also get access to free in-work training for each new employee, as part of existing skills provision in England, Scotland and Wales.

The subsidy is also used as an incentive to people who have been claiming jobseeker’s allowance for over six months. All eligible candidates are encouraged to market themselves to employers to help give them a better chance of being considered for and securing a job.

Core policy elements of the scheme and funding information

The recruitment payment element is being delivered through Jobcentre Plus. Eligible candidates are briefed on the scheme by their Jobcentre Plus adviser and given a self-marketing voucher. They are encouraged to let employers know, as part of the application process for a specific post, that they come with a £1,000 payment to the employer if they are chosen.

Employers are encouraged to claim for each eligible candidate that they recruit. There are two claim processes: one for employers that have high volumes of recruitment (12 or more people a year) and one for employers with infrequent recruitment activity.

Employers are also encouraged to consider developing their new employees and to access free in-work training to support them.

When did the scheme start?

The recruitment subsidy began on 6 April 2009 and is expected to run until March 2011. Please note that it may end early if economic conditions improve and this type of stimulus is no longer necessary.

Eligibility

Any employer can claim for the subsidy provided that they submit a completed claim voucher from an applicant who has been claiming jobseeker’s allowance for over six months.

Employers can only claim for eligible candidates moving into work that is expected to last for a minimum of 26 weeks and average a minimum of 16 hours per week.

Full terms and conditions are available from Jobcentre Plus.

Free in-work training is provided through the relevant lead organisations in England (Train to Gain), Scotland and Wales. Jobcentre Plus will be able to help employers access the training they need.

How to apply

To make a claim for the subsidy or for more information, employers should contact Jobcentre Plus through the details provided on the Jobcentre Plus website. There are two processes for claiming, depending on the employer’s anticipated volume of recruitment and claims:

Claiming for 12 or more recruits in a year. Employers can use a bulk process for submitting claims and receiving payment. £1,000 will be paid in its entirety for each approved claim.
Claiming for less than 12 recruits in a year. Employers can make individual claims as and when they recruit. £500 will be paid directly for each approved claim and a further £500 will be paid after six months, as long as the employee has not returned to benefits.

Is there a deadline for applying?

All applications must be submitted before March 2011 (provided the scheme continues).

Further information

For further details of the full range of support and information available to businesses visit the Jobcentre Plus website.

For specific inquiries about this scheme, email the Department for Work and Pensions at enquiries@dwp.gsi.gov.uk. If you have a general query about the four Real Help Now areas of support, or the Real Help Now pages on info4local, use the 'tell us' form (see link below).

Go back to the Real Help Now jobs and training page