New Deal (Hansard, 14 February 2002)

§ Mr. Nicholas Brown

We recognise the importance of the role of self-employment in the economy and helping unemployed people set up their own businesses is a key feature of our welfare to work initiatives. Eligible unemployed jobseekers can receive help entering self-employment through the new deals or through the Work-Based Learning for Adults (WBLA) programme. This help is available in all parts of the country, including Middlesbrough, South and Cleveland, East.

The self-employment model for people entering from new deals for young people, 25 plus, lone parents and partners or WBLA has three stages:

Stage 1: a one day basic awareness and information session;
Stage 2: four one day courses/counselling leading to the production of a business plan;
Stage 3: up to 26 weeks of test trading (up to 13 weeks in WBLA), in which the participant receives: experience of the responsibilities and realities of self employment;
an allowance equivalent to their previous level of benefit (plus a small weekly top up allowance) to avoid going into debt;
on-going advice and counselling from a business mentor; supported training and;
continued aftercare once test trading has finished.

A range of help and financial support is also available to people moving into self-employment through new deal 50 plus. This includes help and advice from a new deal personal adviser, a tax free Employment Credit paid in addition to someone's income for up to 52 weeks, and an in-work training grant.

The new deal for disabled people is piloting a range of approaches to find out how best to help people on incapacity benefits move into and remain in work. People in receipt of qualifying benefits have access to a network of innovative job brokers across Great Britain who will help and support them in finding and keeping work. As part of the service they offer, job brokers work with people who wish to start their own businesses and offer them support once they have moved into work.