Kickstart Go

Last updated: 2nd September 2021

Introduction

This article provides an overview of the KickstartGo payments processing and the approximate funding schedule, as guidance only, for what employers can expect.

Funding schedule

  • 10 working days from candidate start date, the initial £1,500 remittance is issued. The funding arrives 5 working days after the remittance is issued.
    • The first 3 days the DWP checks the payment request matches their records. They then raise an internal invoice to their payments team.
    • The payments team take up to 7 days to process the payment.
  • As an employer, here you need to do two things:
  1. Notify us of the candidate placement by adding their Introduction ID, full name and start date to the job listed in the portal. This information is used to reconcile the funding payments received from the DWP and the employer the candidate is placed with.
  2. Notify the DWP placements team with the same details as per the information provided in the referral email on the start date of the candidate. This step is required to initiate the funding process.

  • 6 weeks from candidate start date, the DWP will take up to 10 days to check with HMRC to ensure the candidate is paid through the employer’s payroll (PAYE) system and will then issue the remittance for the reimbursement payment to cover wages + NI + auto enrolment contributions. The month 1 payment arrives 5 working days after the remittance is issued.
  • Every month thereafter, the reimbursement remittance is issued following the HMRC checks with the payment arriving 5 working days later.

The above reimbursement payments happen automatically and there is nothing further the employer needs to do.

It is important that the employer’s payroll is up to date to ensure the DWP checks with HMRC can be completed on time.

All funding payments made by the DWP to KickstartGo are processed and sent to the employer on the same day ensuring the employer receives the funding within 24 hours of KickstartGo receiving it.

 

In our experience, you need to have cash flow available to continuously fund up to 2 months wages before receiving the reimbursement payments.

Calculating the payments

When a placement is made, a total grant value is calculated that covers the associated costs for the 6-month placement of the candidate based on their age at 25 hours per week.

 

After 10 working days from the placement start date, the initial £1,500 is issued. The remaining grant value is then divided into six equal monthly payments that are issued according to the above schedule.

 

Please note, as employers payroll cycle is monthly in most cases starting on the first day of the month, unless the placement also starts on the first day of the month, the employer’s payroll and The DWP payment schedules won’t align so the monthly reimbursement payment amounts will differ but as long as the employer’s payroll is up to date with HMRC, it balances out at the end of the six months.

 

Please also note, the reimbursement payment amounts are the same each month so that sick days or annual leave for example can be catered for.

 

KickstartGo payments processing

To guarantee a 100% accuracy when processing the funding payments received from the DWP and passing it on to the employers, a set process is adhered to that involves a peer review, uniquely generated payment references that are correlated to the DWP reference numbers and an employer bank account verification check to ensure it is the correct business bank account. The end-to-end payments process is fully tracked producing a complete audit trail.

 

  • An employer updates their portal account against the approved role providing the candidates Introduction ID, full name and start date.
  • When the DWP funding remittance is issued, we receive the email to a shared resource mailbox and a notification alert is sent to our monitoring channel.
  • The DWP funding remittance is correlated with the Introduction ID’s of placed candidates and the employer identified.
  • When the DWP funds are released, we receive an alert to our monitoring channel and the reference information correlated to the remittance that is correlated to the Introduction ID’s.
  • The same day the funding arrives, unique payment reference numbers are generated for each payment.
  • The banking payment instruction is set up for each employer and their bank account details are checked and confirmed to be the business bank account.
  • The payment transaction details are peer reviewed to ensure it is correct and if it is, the payment is made.