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Wednesday, 3 October 2023

New Enterprise Allowance - business support for jobseekers

The New Enterprise Allowance may help you if you want to start your own business. If you've been getting Jobseeker's Allowance for three months you could get a mentor and financial support (after six months) to help set up your business. Find out more, including how to take part.

New Enterprise Allowance - what it is

If you have a good idea for a business you want to set up, the New Enterprise Allowance can provide practical help and support to prepare you for self-employment.

There are two elements to the New Enterprise Allowance - Business Mentoring and Financial support

Business Mentoring

Available from three months – providing support through the development of your business idea and through the early stages of trading.

Financial support

Available from six months – a weekly allowance payable over 26 weeks worth up to £1,274 - allowing you to establish your business and cash flow. You could also get a low cost loan of up to £1,000 to help with start up costs.

The allowance and the loan are not taken into account when working out:

  • Housing Benefit
  • Council Tax Benefit
  • tax credits
  • Income Tax

New Enterprise Allowance - who can take part?

You might be able to take part in the New Enterprise Allowance if:

  • you’re aged 18 and over and have been claiming Jobseeker’s Allowance for three months or more
  • you have a viable business idea

The New Enterprise Allowance will not be available to you if you are required to take part in the Work Programme.

New Enterprise Allowance - how to take part

If you're interested in taking part in New Enterprise Allowance, talk to your Jobcentre Plus adviser. They will be able to explain:

  • how New Enterprise Allowance works
  • who will assess your business idea
  • who gives you the practical support you need
  • what will happen when you start and what Jobcentre Plus expect you to do
  • how much your allowance will be and how it will be paid
  • about the loan - including where you can apply for a small, affordable loan to help you with your start up costs
  • what will happen when the allowance ends

If you're still interested, you will be invited to go to an organisation that will look at your business idea. They will decide whether your idea could work or not. If they decide your idea has potential they will give you a business mentor to help you prepare for starting up in business.

For more information talk to your Jobcentre Plus adviser. They will be able to:

  • tell you more about the New Enterprise Allowance
  • discuss with you whether New Enterprise Allowance could be right for you

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