§ 11. Mr. BurtTo ask the Secretary of State for Employment how many people are currently participating in the enterprise allowance scheme; and if he will make a statement.
§ Mr. CopeAt the end of October, 91,856 people were participating on the enterprise allowance scheme.
§ Mr. BurtIs my right hon. Friend aware that there are 400 people on the scheme in Bury and that that is a tribute to their initiative and enterprise and to the skills of those who are advising them, to whom we should pay tribute? How many people are on the scheme throughout the north-west, and what is the success rate for the new businesses so created?
§ Mr. CopeAbout 14,000 people are on the enterprise allowance scheme in the north-west region. The success rate can be measured in terms of jobs. For every 100 people who start a business on the enterprise allowance scheme, about 120 people are working for those firms three years later.
§ Mr. WigleyDoes the Minister accept that many new enterprises will expect to make a loss not only during their first year but may make a loss well into their second year? In those circumstances, is there not a good case for enterprise allowance to be allowable at say 50 per cent. of the first year rate, so as to safeguard against that and to help people setting up enterprises who fear such circumstances?
§ Mr. CopeWe can certainly consider that suggestion. However, the enterprise allowance is intended, not to subsidise new firms against losses but to replace the benefit of those who are on unemployment benefit when they start the business.