Jobcentre scheme creates 80,000 new businesses

Posted On: 30th March 2016

More than 80,000 businesses have been set up by jobseekers through the New Enterprise Allowance.business_people_2

Figures released on 3 March by the Department for Work and Pensions (DWP) show 80,830 start-ups in trades like electrical installation, graphic design and jewellery-making have been launched between April 2011 and December 2015 – an average of 1,420 a month.

Of the New Enterprise Allowance (NEA) businesses set up, approximately:

  • 30,300 (37%) were by women
  • 19,000 (24%) were by people aged over 50
  • 16,400 (20%) were by people with a disability

Of all the NEA businesses, the top 5 start-up areas were:

Liverpool (1,410)
Sheffield (1,250)
County Durham (1,180)
Birmingham (1,140)
Glasgow City (1,140)

Research with NEA participants published in January showed 80% of businesses started through the scheme were still trading at the time of the survey, with more than 90% of these still going a year after launch.

Start-up support from the NEA is available to people aged 18 and over and claiming Jobseeker’s Allowance (JSA), Employment and Support Allowance (ESA), Income Support claimants who are lone parents or who are sick, and some Universal Credit claimants.

After showing their business idea is viable, NEA participants are eligible for a weekly allowance worth up to £1,274 over 26 weeks for claimants to establish their start-up.

Read the latest New Enterprise Allowance Official Statistics.

Employment Minister Priti Patel said:

“The New Enterprise Allowance is one of the great success stories of this government’s drive to get more people into work, as the UK’s employment rate stays at a record high.

“Small businesses are the engine room of the UK economy, and by helping people off benefits and to become their own boss we’re enabling them to make the most of the business opportunities out there at the moment.”

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