New Enterprise Allowance scheme - My story

I8it

Some time on from the posts above; I can offer one man's perspective on the NEA as it stands today.

I took up the offer of NEA soon after being made redundant without proper notice. I was eager to get a job and nobody was willing to hire a 40 odd year old with a high level degree. In a similar vein to a post above: if you cant get a job - create a job.

The NEA scheme provided the £65 a week for a few months and thereafter £30 for a few months. The money is welcome of course. However, the help that goes alongside the scheme is sketchy. The scheme is designed to make money from the Government and little more than that. Yes, you get appointments and have to produce plans and charts but what help is this to a start-up business? For me, very little help at all.

In conclusion:
1. many hours of time (and fuel/parking charges) with little produced
2. a tonne of cash in the pockets of Government funded agencies consuming or 'redirecting' taxpayer's money
3. a little help and guidance that could be done in paper/online interactive form as well (or better)
4. some money to help through the early days
5. enrolment on courses that consume taxpayer money and constant encouragement to part with hard earned cash

Whatever else it may be, rest assured of the points above. I had no other options than benefits or Self Employment (SE) and I believe in working for a living. I have a family and I believe in setting an example too. So, for me, this was the only choice. However, I feel that the cost of my move from benefits to SE was greater than it needed to be. Moreover, I feel that the money went in all the wrong pockets - direct to me and I would have been better off and so would the taxpayer!

Nevertheless, I am grateful that the NEA was an option. Without it, I would still be dependant on handouts.

sarahfaith399

@I8it My partner was in the same position, he worked hard and did his very best but was let go a month ago (after giving recipes and ideas which made the place better).
He has just joined the NEA after never been unemployed in 12 years, so far we have had the intial meeting and then met with the next advisor.

I wondered if you could tell me a little bit about the loan. Is it worth going through them?
We have no savings as this was all put into the wedding which was planned pre job loss. As such we have no down payments.

Thank you in advance

I8it

sarahfaith399

I am sorry to hear your partner was taken for granted at his place of work. I still get disheartened on occasion about my own mistreatment.

I only looked briefly at the loan. It seemed reasonable but not great repayment terms. If you need one you will have to make certain that you choose the best one for you. Try your bank and compare the repayment terms. Personally, I see any debt as bad debt and will do all I can to avoid it.

For one thing, I begged the Job Centre for additional help to buy some essential tools and advertising material amounting to around £150 and they were supportive in the knowledge that I may not be able to start up without it. For me, this was enough to get a couple of customers and start the ball rolling.

Jolly good luck with the business; wishing you a happy wedding day and a lifetime of wonderful times together.

sarahfaith399

I8it

Thank you so much for your kind words, he is struggling with what happened to him, I have tried as best I can to help him see the positives (more time together before life gets hectic, time to keep fit, time to thrash out his recipes and perfect them) but he just seems so stressed and angry.

I agree with any debt is bad debt and I have never borrowed, don't own anything that hasnt been bought outright and I do not have an overdraft, I budget my bottom off but obviously was not accounting for the loss of the job.

Is it possible to get a loan from the bank with no down payment? He is worried they will turn him down and ruin his excellent credit score, or that they will say yes but he has to put x amount towards.

We are looking into Kickstarter but he lacks confidence on film!

Thank you once again for your kind words, it is really appreciated.

I8it

sarahfaith399

So sorry, I can not help you out regarding the financial decisions. Too many options dependant on too many unknowns. One truth for all loan possibilities - it's gonna cost ya!

Nevertheless, if you need one to start up look closely at each offer (twice!).

Kickstarter could be the way forward. Set out the strategy and projected returns. Not everyone wants to invest in some 'Apprentice' style bighead surely.

Good luck to you both

swellpower

Before we start let me say I have been employed for the last 25 years but took voluntary redundancy before I was made redundant.


I have to be fair this just looks jobs for the boys
I have had my payments suspended for the last 4 weeks because even though I am seting up my own business I disagreed with signing a form, stating that "i will be available for all types of work,i will seek and apply for all types of work that give me the best prospects of employment,i will look for work and travel within 90 minutes each way from home,im available to attend a job interview immediately ,im available to start work immediately


If I sign this form its like they want it means they don't really want my business to be successful,they want me to commit fraud, the person in the job center seemed not to care to the point they seemed they didn't want me to sign the form as I will be signing something I have no commitment in applying either way its wrong.
The only bit of advice I have been given is visit my friend who runs this course or this is good business manager I will put you in contact with him.
I had everything I needed, funds ,everything .
I went on this stupid NEA and now its cost me.
For people that have their own funds already to start their own business stay away from this as it will cost you in the long run
Projected income for the last month £1000.00
NEA INCOME £0.00
It don't take a genius this scheme only benefits the NEA managers and the people he knows.
the people trying to do the honest thing get and make a living get screwed,for this thing I am seeking legal advice and compensation for loss of revenue and wasted 0845 numbers called when they cant get their facts right for them to say their computers have gone down,that seems to be a regular occurance to keep you on the line to cost you more money .
.


This should be called NEB
NEW ENTERPRISE BU@@SH@T

Andy2013

Hello everyone Happy New Year to you all, bit late but no one has posted this year as yet.


Lets hope its a prosperous one for us.


So how is everything going for the oldies who have posted over 2014, any progress with businesses and how has NEA gone for those whom should have finished now.


How are things for the newbies , lets see if we can get this thread moving again .

armyknife

Andy2013 wrote: »

Hello everyone Happy New Year to you all, bit late but no one has posted this year as yet.


Lets hope its a prosperous one for us.


So how is everything going for the oldies who have posted over 2014, any progress with businesses and how has NEA gone for those whom should have finished now.

How are things for the newbies , lets see if we can get this thread moving again .

Yes I'd be very interested in some follow-ups as I'm seriously thinking of doing this and want to know the most effective way of using it for my own and the DWPs/government's benefit.

TrueBlue1965

Hello, Andy2013. Happy New Year to you! Agreed, this forum needs to be kept moving. While we dont agree on some issues/experiences. There is a lot of good information on the thread which can help others to get their business up and running.

My business is still running 14 months after NEA payments started. Very quiet re sales for the last 3 months. I did expect this. So, left enough money in the bank to cover these quiet times and keep the business running.

I,ve had the chance to look at my business and where it goes from here. I,ve made a few mistakes and waisted money in the first year of trading. Some missed opportunities! So, lots of plans in place to gain the most from my experiences in the past year. March was lift-off with good sales last year. So, looking forward and being positive. As always, im in control of my business and my life.

Hello, armyknife. What follow-up info are you after? Ask and im sure those still following the NEA thread will attempt to help.

pinkypoopydoo

Hi armyknife - what sort of stuff are you looking for?

My business has been running since June 2013, so I'm coming up for my second anniversary.

Personally, I was a little disappointed with the back-up I received from the NEA mentors, BUT, the inital kick of someone saying I had a viable business idea, and a workable plan was probably the right amount of kick that I needed.

I can report that I'll be looking at having a tax bill for 2014-2015, which I'm absolutely delighted about - maybe not about the bill, but about the fact that my earnings have increased enough this year to make it a prospect!