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New Enterprise Allowance

Question for Department for Work and Pensions

UIN 105535, tabled on 17 January 2022

To ask the Secretary of State for Work and Pensions, what assessment she has made of the effect on potential entrepreneurs of ending the New Enterprise Allowance.

Answered on

20 January 2022

No assessment has been made.

The contract for the New Enterprise Allowance (NEA) was extended by nine months to support claimants through the unprecedented challenges that arose due to the pandemic. While new referrals to the NEA ended on 31 December 2021, participants on the programme will receive support until October 2023.

The NEA was 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 support 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 individuals who were previously unemployed.

Support for the self-employed is built into Universal Credit. Self-employed claimants on Universal Credit receive financial support to supplement their earnings, and during a start-up period, regular support from self-employment Work Coaches. This includes signposting claimants 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. DWP also partners with local and national organisations so that claimants can access tailored, all-round support.

Named day
Named day questions only occur in the House of Commons. The MP tabling the question specifies the date on which they should receive an answer. MPs may not table more than five named day questions on a single day.