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New Enterprise Allowance

Question for Department for Work and Pensions

UIN 57020, tabled on 15 October 2021

To ask the Secretary of State for Work and Pensions, for what reason her Department has decided to end the New Enterprise Allowance scheme.

This answer is the replacement for a previous holding answer.

Answered on

21 October 2021

The contract for the New Enterprise Allowance (NEA) was due to end in March 2021, but was extended by nine months to support claimants through the unprecedented challenges that arose due to the pandemic. As the economy opens up, it is right that we focus our resources on getting jobseekers into work and progressing with support underpinned by our Plan For Jobs. Furthermore, while referrals to the NEA end on 31 December 2021, participants on the programme will receive support until October 2023.

The NEA is just one form of provision available to the self-employed. Those self-employed or those wishing to become self-employed can access support from the Small Business Helpline in England, Business Wales and Fair Start Scotland. Additionally, the Start Up Loans scheme, run by the British Business Bank, delivers support to many people that may have otherwise struggled to obtain it through a commercial bank loan. The scheme provides mentoring to those starting their business, and offers support to women entrepreneurs, entrepreneurs from ethnic minority backgrounds and the previously unemployed. Where Jobcentres identify claimants with additional support requirements not met elsewhere, they may use Flexible Support Fund to commission additional localised support.

Support for the self-employed is built into Universal Credit, so claimants can receive financial support to supplement their earnings and they can receive regular support from Self-Employment Work Coaches, who will signpost entrepreneurs to tools and resources to develop the skills and experience they need. Claimants on legacy benefits who become self-employed may migrate to Universal Credit and receive a start-up period of up to one year, which includes 1-2-1 Work Coach support to develop their business.

Named day
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