Ipswich Unemployed Action.

Campaigning for Unemployed Rights.

New Enterprise Allowance Statistics: More Hare-Brained Schemes.

with 27 comments

Great Britain New  Enterprise Allowance  Statistics. 17th June 2014.

“On 6 October 2010, a plan was announced by Work and Pensions Secretary Iain Duncan Smith to revive the scheme, giving mentoring and funding of up to £2000 to those unemployed for over six months and wishing to start up their own business.[6] The funding would include a weekly payment linked to the value of their benefit, and £1000 for the purchase of equipment.”

1. New Enterprise Allowance (NEA) aims to help unemployed people claiming out of work benefits who wish to start up their own business.
2. Initially, participants in NEA work with a business mentor to develop their business  idea. Once they have started trading and left benefits, they receive a weekly
allowance.
3. This publication records the number of starts where people have started working with  a business mentor and the number of starts where people have started receiving the
allowance as recorded on the Jobcentre Plus’ Labour Market System.

The key findings are:

 Since NEA was rolled out in April 2011, up to March 2014, 93,880 starts have  been made where people have begun working with a business mentor;
 During this period, 46,000 of those mentor starts have progressed to start  receiving the weekly allowance.

But has it worked?

How many enterprises have succeeded?

We know the “take up” but not these figures.

We are reminded of this comment on its launch,

Accountants slam New Enterprise Allowance as ‘hair brained’.

David Ingall, partner at JWPCreers and a member of UK200Group, described the New Enterprise Allowance, which the government says will create up to 40,000 new businesses by providing financial and mentoring support to unemployed people, as a “New Year fantasy”.

It comes, he added, “at the same time that HM Revenue and Customs has announced it is to target 50,000 businesses a year over the next three years to see whether their accounting records are adequate or accurate.”

Ingall continued: “The estimate from HMRC is that they are going to raise millions in penalties from those businesses, so on the one hand the government is offering to help businesses and on the other they are looking to punish them.

“It concerns me that the assistance will be offered to those with a viable business plan. Judged by who?

“I can see the only beneficiaries will be those offering to write business plans for the applicants, who probably will not understand what is being put forward in their name. I am sad that such a hare-brained scheme is being proposed by the government.”

Daniel Shear, another member of UK200Group, was equally scathing saying the NEA was a “headline grabbing proposal that may not actually make an awful lot of difference”.

“The scheme provides allowances of £1,275 over six months and a £1,000 loan to cover start-up costs,” he added. “Whilst welcome, the quantum of the allowance/loan is small compared to the cost of launching most new enterprises, meaning the proposals may make little discernable difference to potential entrepreneurs.”

The NEA will be launched in Merseyside later this month and rolled out nationwide in the Autumn. Around £50m is expected to be available.

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Written by Andrew Coates

June 17, 2014 at 3:08 pm

27 Responses

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  1. “It comes, he added, “at the same time that HM Revenue and Customs has announced it is to target 50,000 businesses a year over the next three years to see whether their accounting records are adequate or accurate.”

    Ingall continued: “The estimate from HMRC is that they are going to raise millions in penalties from those businesses, so on the one hand the government is offering to help businesses and on the other they are looking to punish them.”

    Which is exactly why you should have no truck with any of the “self employed” nonsense that the joke centres try pushing you into. Unless you’re a mathematical wonk who really understands the sort of opaque officialese that HMRC translates everything into as a matter of course then you’re going to be in deep shit before you really know what’s happened to you.

    Dan

    June 17, 2014 at 8:05 pm

    • “The Means Test Scandal – A Scathing Exposure, 1929-1933″

      http://sites.scran.ac.uk/redclyde/redclyde/rc069.htm

      Annos

      June 17, 2014 at 8:14 pm

    • I thought that the Benefit Integrity Centre (project) was something from the 1980s and that now it’s known as Compliance. Resurrected and rebranded.

      Compliance interviews seem to be carried out if some wretch has tipped off the DWP that someone else is committing benefit fraud, and the tip off doesn’t give the DWP much to go on (because often the accusations are malicious lies) Compliance seems to be used as a soft first option and evidence gathering process before a decision is made on whether to go the PACE Interview under caution and prosecution route.

      Of course, the DWP say that Compliance interviews are just to ensure that someone is getting the correct level of benefits.

      I wonder if they have brought back BIC as a second set of thuggish tools to bludgeon us with?

      Lucy

      June 18, 2014 at 9:27 am

  2. t least the jokepoints are still there where I sign on. For how long?

    Beryl

    June 17, 2014 at 9:49 pm

    • Beryl. When the idea of Universal Jobmatch was first muted, my pa at the jobcentre where I sign on told me, ”(IF) when Universal Jobmatch goes live. It would not be long before signing into the site everyday and putting your activities on display you would have been deemed as signing on. This could also be why the DWP are now trying too get everybody onto UJM and making them allow access. It appears though that some staff ”MAYBE” employing delay tactics to protect their jobs too.

      Philip

      June 18, 2014 at 7:44 am

    • All jokepoiints and telephones have been removed from my local sanction centre. They were ripped out a fortnight ago.

      Jester McFail

      June 19, 2014 at 4:39 pm

      • Happening at our one in Suffolk Too. {A rather large town-local team could be the ”Tractor Boys”

        Nobby The Gnome

        June 20, 2014 at 8:25 am

  3. Apparently there’s been 10s of 1000s of new businesses started, although it seems hard to find any of them, their websites and facebook pages tend to freeze about the same time as their NEA runs out!

    http://www.telegraph.co.uk/finance/yourbusiness/10257591/New-Enterprise-Allowance-scheme-creates-26000-new-businesses.html

    This is an attempt to find the success rate.
    https://www.whatdotheyknow.com/request/success_rates_for_new_enterprise?unfold=1#incoming-299656

    Another Fine Mess

    June 17, 2014 at 10:01 pm

    • 9 out of 10 start ups fail in the first business year so does that help to paint a picture?

      gaia

      June 18, 2014 at 10:12 am

      • H.G.Wells also painted a picture of people launching out as small shopkeepers and then eeking out a threadbare existence in The History of Mr Polly.

        You can see these ‘start-ups’ all over over town – they generally close when all the subsidies and rate relief runs out.

        Andrew Coates

        June 18, 2014 at 10:46 am

      • What H.G Wells tapped into was the fact despite i have money in my pocket and you have it in yours so many miles away to two are still intrinsically linked.

        That money is if you like a band running on cogs and always rotates only one way.

        Nice poignant post their Andrew Coates, nicely done.

        gaia

        June 18, 2014 at 11:04 am

  4. Oh dear, here we go again. Labour, under Messrs Blair and Brown, tried this out with limited success as did their predecessor under John Major. Talk about what goes around comes around.

    jj joop

    June 18, 2014 at 7:05 am

    • jj joop, yep, around and around, this time, straight back to the 1980s and the Enterprise Allowance Scheme – £40 for a year. Not many businesses lasted long beyond that year back then either.

      The UK today is an eighth circle of hell.

      Lucy

      June 18, 2014 at 9:32 am

      • If claimants don’t know already you don’t need government schemes to form a new business. You learn to create a business plan then simply approach your bank manager.

        Their far better suited to say what investments work and what don’t so have no interest in screwing you. Please be aware the experience is quite intense and it is 50/50 but if they do go for it your get a lot more money than a few grand and their support completely trumps anything this scheme can do.

        Seriously what kind of company/startup starts out with outlays as low as what the government offer as assistance beyond door to door selling of poor products or other trades destined to fail for one reason or another in time.

        The best ideas can come from nothing as sure as nothing can come from the best ideas (ie, your idea is only as profitable as your client bases whims and wants irrespective of outlay).

        gaia

        June 18, 2014 at 10:50 am

      • And as I recall, quite a lot of them only existed on paper. They were often just individuals who “employed” family and friends. They just took the money and ran.

        jj joop

        June 18, 2014 at 11:08 am

  5. Anybody Seen The Front Of The Daily Mirror Today 18 June

    Philip

    June 18, 2014 at 11:11 am

  6. I have now.

    So they are spying on us on Facebook.

    I hope they like cats.

    Andrew Coates

    June 18, 2014 at 11:45 am

  7. “Ed Miliband to set out plans to cut benefits for young jobless”

    http://www.theguardian.com/politics/2014/jun/18/labour-welfare-plan-benefits-means-testing-training-ed-miliband

    Well,, look on the bright side, we do have a choice at the next election!…TORY, TORY, or TORY….

    Annos

    June 18, 2014 at 9:43 pm

  8. From spying on Facebook to DWP Home Visits:

    https://www.gov.uk/dwp-visit

    Here is what is likely to happen on one of these home visits:

    http://mikesivier.wordpress.com/

    Tobanem

    June 19, 2014 at 10:19 am

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    local seo

    October 2, 2014 at 6:00 am


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