Work Programme - New Enterprise Allowance - Benefit Sanctions - Mandatory Work Activity - Work Experience - Refuse the Work Programme

New Enterprise Allowance: Apply

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Be warned some Jobcentre Plus offices will continuously lie to you about the New Enterprise Allowance - either because staff haven't been told the correct information or that they have been told to lie on the front line.

If you stick to following procedure at Jobcentre Plus' schedule you are extremely unlikely to make it on the New Enterprise Allowance scheme or in business at all.

We recommend you attempt the Defacto procedure.

If that goes no where try the Advanced procedure. Don't allow yourself to be stalled.

Apply for the New Enterprise Allowance (standard).

Useful Resources
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If you have a business idea and you wish to pursue it as self-employed, where you have been unemployed for over 6 months and your business has the opportunity to grow enough to employ others... enter NEA!

The standard procedure is to, ask a Jobcentre Plus advisor:

  • When you next sign on (signing on appointment)
  • When you next have an non-signing on appointment

about the New Enterprise Allowance.

If they say along the lines of:

  • Provider is not on board
  • Not available in this area
  • You are not eligible (unelss of course you are not)
  • NEA contract in this region hasn't began yet
  • Too many people have applied for this month/no places left
  • What is N.E.A?

then ignore this step and go straight to Apply for NEA (Advanced).

Apply for the New Enterprise Allowance

This step is for a last resort. Some advisers might judge you as not worthy of running a business and/or becoming an employer - ultimately its not up to them (unless you let it be). Employment Officers who sign you on every 2 weeks (or less frequent in some areas) are most likely to deny you access to the scheme although they may remain friendly and remind you to ask next time - this is due to delaying you for 2 weeks each time.

Some people have been assigned ready for the Work Programme awaiting being mandated to the scheme. This is one of the many motivations as to why some people are being lied to about NEA.

National roll out of the New Enterprise Allowance began in August 2011. All areas have active NEA contracts with the relevant providers. There is no fair and legit reason to be denied NEA.

 

If you are being denied New Enterprise Allowance and have been claiming for 6 months (or have linked claims for such length) do the following:

  1. Find out who the NEA provider is in your area
  2. Contact the NEA provider enquiring about the scheme (they will advise you to contact Jobcentre Plus to refer you, however, the call is so you can find out information of the scheme being active, that referrals from your Jobcentre Plus office has occured and to counter Jobcentre Plus if they claim NEA isn't available) whilst making a note of the date, time and who you spoke to.
  3. Ring up Jobcentre Plus to arrange an appointment to enquire about NEA
  4. Attend appointment (likely to give you information sheet of what you already know and assign you an appointment in 4-8 weeks time to continue)
  5. Once you completed your business plan, ring up for an appointment - don't wait for the other appointment

New Enterprise Allowance

This is paid after your business plan is completed and if you are accepted (you will continue on JSA until then).

You then have to "sign off" to get the New Enterprise Allowance payments, and to apply for the loan (if you wish to).

The New Enterprise Allowance (NEA) payments are:

  • £65 a week for the first 13 weeks
  • £33 a week for 13 weeks
  • £0 thereafter
After 26 weeks the payments stop as it is expected you to be trading and bringing in an income.

Housing Benefit

You will remain entitled to Housing Benefit as the NEA payments are disregarded. You might have to contact the council after you sign off as both benefits are linked. Your income when you start making money wont be.

Independent Guide

We aim to provide information to potential NEA participants which isn't available on directgov or in general circulation at Jobcentres. Feel free to navigate every page through the top green navigation bar if you cannot find what you are looking for.

NEA Loans

Loans of up to £1000 are payable at 10% APR (although this might vary on individual circumstances) over 3 years.

You may wish to check for other methods of finance including from family, friends and high street banks.

The NEA loan is NOT guaranteed - there might be better value loans or loans of higher amounts available to you.

Mentoring

A "mentor" will help you through compiling a business plan of 8 one hour sessions, who will assess whether or not to let you on the scheme.

Once you are on the NEA scheme there is no mentoring.

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