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July 3rd 2017 / BY: Wisteria

What is the New Enterprise Allowance?

The New Enterprise Allowance provides money and support to those starting up or growing their business, and are getting certain benefits.

Which benefits do I need to be getting to be eligible for New Enterprise Allowance?

To be eligible to need to meet the below criteria:

  • Be at least 18 years of age
  • Have a business idea
  • Get one of the following benefits
    • Jobseekers Allowance (you can qualify if your either you or your partner is getting this allowance)
    • Employment and Support Allowance (you can qualify if your either you or your partner is getting this allowance)
    • Income Support (if you are a single parents, or are sick or disabled)

If you don’t meet the all above criteria, but are getting universal credit, you may also be eligible.

What sort of business idea do I need to have?

You can have any business idea. This idea will then be assessed by a business specialist, and if the idea is found to have potential, then you will be enrolled on to the scheme and with a business mentor.

What help can I get through the New Enterprise Allowance Scheme?

  • A workshop to help you decide if self-employment is suited to you
  • A mentor to help develop your business idea, and support you for up to 52 weeks
  • A weekly allowance for 26 weeks (up to £1274) (which doesn’t need to be paid back) if your business plan is approved and you spend 16 or more hours working on your business each week.
  • Applying for a loan to deal with start-up costs, which will need to be paid back

Can a self-employed individual getting universal credit get help from the New Enterprise Scheme?

Yes.

You can get the below help:

  • Get a mentor to support your business for up to 52 weeks
  • Help to create a business development and growth plan
  • Apply for a start-up loan (which will need to be paid back), if your business is less than 2 years old.

Will the money I get from the New Enterprise Allowance Scheme affect the benefits I receive?

No. The money you get from the New Enterprise Allowance will not affect your Housing Benefit, tax credits, Income Tax, Universal Credit or Access to Work Grant.

For more information on this scheme, please contact your nearest Jobcentre Plus.

For anyone looking to form a company, Wisteria provide a company formations service from only £9.95 – learn more here.