New Enterprise Allowance can provide money and support to help you start your own business if you're getting certain benefits. Contact Jobcentre Plus to apply or find out more.
You must be aged 18 or over, have a business idea and get one of the following benefits:
-- Jobseeker’s Allowance
-- Income Support as a lone parent
-- Employment and Support Allowance, if you’re in the work-related activity group
A Jobcentre Plus adviser can refer you to the scheme as soon as you get a qualifying benefit.
You don’t qualify if you’re part of the Work Programme, but you can still get help setting up a business elsewhere.
Help you can get
-- get a weekly allowance paid for up to 26 weeks (up to a total of £1,274)
-- apply for loan to help with start-up costs
The loan has to be paid back, the allowance does not.
Any money you get does not affect your Housing Benefit, tax credits, Income Tax, or Access to Work grant.
You could get:
-- a mentor to help you develop your business idea and write a business plan
-- ongoing support from a mentor in the early months of trading
How it works
A specialist will assess your business idea and if it has potential:
-- you’ll be signed up to the scheme and get a business mentor
-- your mentor will help you write a business plan
You’ll be able to claim financial support if:
-- your business plan is approved
-- you start working at your business for 16 hours or more per week
The Department for Work and Pensions has more information about the New Enterprise Allowance.