Kickstart Scheme Payment Gateway Bust - DWP won't pay

TFK

Hi,

My company uses the government's Kickstart scheme to provide jobs.

Today we where notified that our payment gateway, the intermediary that facilitates payment, defaulted or may have on its grant agreement with the DWP. 

The DWP has suspended all future payments for our current Kickstarter employees. Meaning they have said they won't be paying us their wages for this month and any further.

Letter from DWP:

"This letter is to inform you that we have undertaken a review of the Grant Agreement for Gateways between Business A Limited and DWP. Following this review, DWP has determined that an Event of Default has or may have occurred and as such the Grant Agreement as between the DWP and Business A Ltd has been terminated. 

 

DWP notified Business A Limited of the decision in writing to terminate the Grant Agreement on 1 March 2022. The DWP Review Board initially agreed to fund all current Participants for the remaining duration of their placements. However, since this decision was made, DWP have been informed by Business A Limited that the company now has insufficient assets to meets its liabilities and is insolvent within the meaning of the Insolvency Act 1986. As such we are therefore unable to release any further Grant Funding to the Gateway Organisation and the Grant Agreement as between DWP and Business A Ltd is now fully terminated, including in respect of all current Participants. 

 

What this means for you as an Employer taking part in the Kickstart Scheme through this Gateway Organisation:

• All Kickstart vacancies under this Grant Agreement have been withdrawn

• No further Participants can start taking part in the Kickstart Scheme through this Grant Agreement

• If you wish to make a private arrangement with any current Participants to enable them to finish their placements with you, you are free to do so. However, DWP will no longer be able to issue Grant Funding via Business A Ltd to cover any associated wage costs. Any such arrangement would therefore need to be funded by way of your own resources.

 

As per the Kickstart Scheme Grant Funding Agreement Terms and Conditions for Gateways and Employers your Grant Funding Agreement is with the Gateway Organisation (Business A  Ltd) and not with DWP. Nor are you a party to the separate Grant Agreement for Gateways (now terminated) as between DWP and Business A  Ltd.

 

DWP can confirm that we have issued all appropriate Grant Funding to the Gateway Organisation up to and including 1 March 2022. if you believe that any outstanding Grant Funding is owed to you, you will therefore need to contact the Gateway Organisation direct, pursuant to your Grant Agreement with them."

So this month's payments are due at the end of the payment for the employees who have already worked nearly a full month and the DWP ain't paying. The gateway have disappeared with no one answering the phone and their staff have left on LinkedIn.

Company and director is still active on companies house and they are not on the insolvency register. 

I've emailed DWP re clarity on this month's wages. However I'm concerned I'm wasting my time.

Can anyone help?

Sir