Finance · 17 March 2016

The Budget 2016: Government commits to helping benefit claimants start and grow enterprises

New Enterprise Allowance

Freelancers and contractors in receipt of working tax credits are to receive access to business support and mentoring under new plans unveiled in George Osborne’s 2016 Budget.

The chancellor also revealed that the New Enterprise Allowance (NEA) which currently provides money and support to people on Jobseeker’s Allowance who want to start their own business will be made available to self-employed recipients of universal credit.

The scheme which has been championed by high-profile entrepreneurs including successful Dragons? Den contestant LevI Roots has been responsible for the launch of 2, 000 new businesses a month since it was created in 2011.

Roots has previously said of the NEA in 2013: it’s a great scheme, which helps people with ideas make the most of their talent.

by offering expert mentoring support and startup funds it sends a message to those thinking about starting their own business: you’re not alone

One of our Small Business Decision Makers 2016, Michelle Mone, is another supporter of the scheme. She applauded the NEA in her recently published report on boosting enterprise in deprived communities, arguing it is a ‘successful, value for money programme that has resulted in over 70, 000 people becoming self-employed.


 
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ABOUT THE EXPERT

Hannah Wilkinson is a reporter for Business Advice. She studied economics and management at Oxford University and prior to joining Business Advice wrote for Kensington and Chelsea Today about business and economics as well as running a tutoring company.

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