HC Deb 20 June 1989 vol 155 cc141-2
14. Mr. Burns

To ask the Secretary of State for Employment if he will make a further statement on developments in the enterprise allowance scheme.

Mr. Cope

Over 440,000 unemployed people have been helped to start their own businesses under the enterprise allowance scheme since it began in 1982. We have provided for 90,000 places this year and about 85,000 people are currently in receipt of the allowance.

Mr. Burns

Does my right hon. Friend accept that those figures are extremely welcome, particularly as 9,000 people in Chelmsford have joined the scheme? As 57 per cent. of the businesses involved have lasted for more than three years, does he agree that it is an excellent method of job creation? Will he calculate how much it costs the taxpayer to provide that number of new jobs?

Mr. Cope

The net cost per person off the unemployed register is about £1,846, but we are not talking only about people who actually create the businesses; there are also the people whom they employ. For every 100 people who complete the enterprise allowance scheme there are 139 people working two years later.

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