New Enterprise Allowance scheme - My story

s450

Thanks for your answer.
I submitted the documents today and I mentioned that I am also receiving NEA.
Let's see what happens with my claim.

Winston10

Hi
I have recently claimed JSA after splitting up with my partner. I was looking into self employment previous to this and so read up on the NEA when I claimed JSA. I mentioned this to the job centre and lone parent advisor. I'm booked into a workshop but this isn't until. July 11th. I've to apply for a job that is 20 hours. If I get this I will lose eligibility for NEA. The advisor said most people don't do the workshops but I felt it best to take all the help and support available. Has anyone else been in this position?

tomterm8

Winston10 wrote: »

I've to apply for a job that is 20 hours.

Have you been referred to the scheme? Have you had your first individual meeting with your mentor?

Why do you think you HAVE to apply for this job?

Legally speaking, once you have met your mentor and are participating on the NEA scheme you don't have to be actively seeking work and therefore don't have to apply for jobs. This period lasts for upto 8 weeks while you write your business plan.

You do have to be available for work so if work is offered you have to take it, and if that happens you lose eligibility for the NEA scheme.

Winston10

I've only had two signing appts both with the LP advisor and at the first appt we agreed I would look for library work. By the second appt four library vacancies came up so she said I should apply for one. I'm booked into a workshop but haven't got an appt to see a mentor yet or been referred to the scheme. Thanks for your reply

dktreesea

Winston10 wrote: »

I've only had two signing appts both with the LP advisor and at the first appt we agreed I would look for library work. By the second appt four library vacancies came up so she said I should apply for one. I'm booked into a workshop but haven't got an appt to see a mentor yet or been referred to the scheme. Thanks for your reply

There's nothing to stop you getting your business up and running whilst working 20 hours a week, is there?

Winston10

If I work over 16 hours a week I lose JSA and my eligibility for the NEA and I'd hoped to gain support advice and access to the loan

tomterm8

Winston10 wrote: »

If I work over 16 hours a week I lose JSA and my eligibility for the NEA and I'd hoped to gain support advice and access to the loan

At this stage because you haven't been referred, if you don't apply for the job, go to any interview, or refuse to take a job if offered then you lose your entitlement to JSA anyway (you get sanctioned).

Bluntly speaking, though, the support the NEA scheme gives you is very time limited and the loan isn't actually hugely good value for money. Given a good enough business plan you can get the money elsewhere.

If I were you I'd go for the job, and start the business in your own time...

EDIT: I would ask to be referred to the NEA at the next meeting you have with your advisor... once you are on the scheme you shouldn't have to be actively seeking work. You can still apply to anything you want.

dktreesea

NEA, WTC and all the associated benefits like housing benefit, council tax benefit and a NHS exemption card are nice to haves, no doubt about it. But Universal Credit is coming. Even though the minumum income floor still just means you will be assessed as if you had the NMW for the hours you are expected to work, a max of 35 for anyone expected to work full time, so benefits will still kick in thereafter, I think everyone who is self employed, including the newly self employed, needs to be getting their business built up pronto, so that once they are subject to UC, they will already have profits at least equivalent to the FT NMW coming in.

It's not that easy to make the FT NMW, at anything. A factory job may only pay NMW for 37.5 hours a week, but that doesn't make it a 37.5 hour week for the person doing the job, not unless they live right next door to the factory and it only takes them 5 minutes to get ready for work and be out the door.

In my neck of the woods I see factory workers getting up at 5am or so, out the door before 6am, to get to factories that are an hour away door to door by public transport. They're not home until somewhere around 5pm. To me that's a 60 hour week, not a 37.5 hour week.

And yet millions of businesses, even now, with UC barking at the door, make nowhere near the FT NMW in profit. (source: HMRC, latest income tax figures available, for the FY ended 5.4.12)

TrueBlue1965

Hi Winston10. The main aim for you is to get your job centre lone parent advisor to get you referried to NEA if tats what you want. This usually means discussing your business idea with your JCP adviser. If your business idea sounds like it has potential. You should be referried to NEA quite quickly. Ask to be referried and dont take no for an answer. Focus all your discussions with your JCP adviser on NEA and your business. Stops the !!!!!!s from pushing you in to the first job that comes along!

While your expected to be actively seeking work while on JCA. That does not mean that you have to get every job that you are pushed in to applying for. Its difficult enough for most to get a job. How difficult would it be for you to not get a job if your heart is set on becoming self-employed? If your sure that you want to go on NEA. Push your JCP adviser over NEA. The sooner your referried to NEA, the sooner you have the JCP adviser off your back!!!

I did a pre NEA workshop. Very useful it was too. I had already been referried to NEA and had my interview with NEA the following week It took another couple of weeks before I got a mentor and then we started working on my business plan. I ended up doing another 6 workshops as part of what was on offer in my area for those on NEA.

I fully understand why you would want any help, support, advice and access to the loan to start your business. Without NEA and all that it has offered me. I would not have started my business properly. I had been trying to start it for 2 years. Im 3 payments away from the end of NEA now. A few bumps along the way and lots of hard work but im still trading and still making money. The £2,500 loan to start my business is now covered by my profits and in the bank.

If you believe in your business idea. Then, go for it, Winston10. You can always go after another library vacancy if your business idea does not work out!

Winston10

Thank you all for your thoughts and advice. I'm really keen to be self employed and have been looking into it for some time. Now that I am on my own with my children I feel less pressured and am able to focus more on what we want and need. I'm determined to make a go at this and feel enthused by true blues comments too - thank you. I will apply for the library job as I don't want to risk losing my JSA and will ring my advisor next week to speak to her about referring me sooner. Thank you for your time