§ Mr. Jim CunninghamTo ask the Secretary of State for Education and Employment what resources and money are being targeted to help people who are aged(a) 50 and over and (b) aged under 25 years who are not working, to set up their own businesses. [139390]
§ Ms JowellUnemployed people aged over 50 who are looking for work and are considering self-employment may be eligible for Work Based Learning for Adults. This programme provides: initial support and advice, awareness of the implications of self employment, help to develop business plans, appropriate skills training and on-going mentoring while in training. The budget for Work Based Learning for Adults for this year is £316 million for England.
New Deal 50-plus provides practical advice and financial support for people moving back to work and this support extends to those who become self-employed or set up in business. The Employment Credit of £60 a week for up to a year for those working full-time and the in-work Training Grant of up to £750, provide vital financial support for the individual in their first year back in work. The budget for New Deal 50-plus this year is £120 million for Great Britain. In addition, from April next year, New Deal 25-plus will be offering a dedicated route into self-employment.
The Department for Education and Employment is also helping to fund the set up of PRIME, an independent organisation modelled on the Prince's Trust. PRIME offers advice and support to people over 50 wishing to set up their own business, through its network of pilot offices. PRIME also intends to offer structured advice and support to New Deal 50-plus clients. In addition to this it will soon be able to provide business loans to those individuals who are unable to secure these loans in the usual way.
There are two major initiatives that support unemployed young people in establishing their own business: the self-employment route of New Deal for Young People; and the Youth Enterprise Initiative.
315WThe self-employment route of New Deal for Young People is delivered in three stages: a one day awareness raising session; a four day course and/or counselling leading to the production of a business plan; skills training and on-going mentoring; and a 26 week period of test trading where a participant runs their own business while receiving a training allowance. The budget for New Deal for Young People this year is £466.4 million in England.
The New Deal programmes referred to offer the individual flexibility to choose between working for an employer or as self-employed; therefore the proportion of the New Deal budget which is used for self-employment support cannot be specified, as it is not ring-fenced.
The Youth Enterprise Initiative operates in England and is managed by The Prince's Trust, supported by DfEE and private donations. It offers loans and grants to disadvantaged young people between the ages of 18–30 wanting to set up their own businesses who are unable to access start-up capital from commercial sources. Assistance is given in putting together a business plan, and the help of a business mentor is provided for up to three years. Funding amounts to up to £50 million over seven years, and aims to help up to 30,000 young people into business.