New Enterprise Allowance can provide money and support to help you start your own business if you’re getting certain benefits.
- get a business mentor to help you develop your business idea and start trading
- get a weekly allowance paid for up to 26 weeks (up to a total of £1,274)
- apply for a Start Up Loan to help with start-up costs
The loan has to be paid back, the allowance doesn’t. Any money you get doesn’t affect your Housing Benefit, tax credits, Income Tax, Universal Credit or Access to Work grant.
Who is it for?
You must be aged 18 or over, have a business idea and get one of the following benefits:
- Jobseeker’s Allowance (or your partner does)
- Employment and Support Allowance (or your partner does)
- Income Support, if you’re a lone parent, or you’re sick or disabled
You may also be eligible if you get Universal Credit. Your Jobcentre Plus work coach can check if you qualify and refer you to the scheme.
You don’t qualify if you’re part of the Work Programme, but you can still get other help setting up a business.
How does it work?
A specialist will assess your business idea. If it has potential you’ll be signed up to the scheme and get a business mentor. 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
Your Jobcentre Plus work coach will explain:
- how New Enterprise Allowance works
- who will assess the business idea
- who provides the practical support
- what Jobcentre Plus expects from you
- how much the allowance will be and how it will be paid
- about the loan
- what will happen when the allowance ends