Can't Go ON NEA Scheme Due To Being On Work Programme

Truegho

I am not a happy bunny at the moment, as I have just been down to the Jobcentre to make a rapid reclaim (my temp office job finished last week), and told them I wanted to start my own business. However, when I said I wanted to apply for the New Enterprise Allowance scheme, I was told that I was not eligible as I was on The Work Programme (the two years duration of which ends next March). I ask you!

How on earth does the government expect us jobless people to start their own business if these stupid laws are preventing us from doing so.

Has anybody else encountered similar problems when they have told the jobcentre they want to start their own business?

And where do I go from hear now, in regard to wanting to really make a go of my business? I mean, do the Work Programme advisors have specialist advice for people like me?

Dogger69

The WP advisor should be able to refer you to someone that specialises in start up businesses, yes.

Truegho

Thanks. There is still a grey ambiguous area with me, though, between when I can leave JSA and officially declare myself self employed. There is also the uncertainty of claiming Working Tax Credits, as I believe these are soon going to be scrapped in favour of this Universal Credit they are bringing in soon.

I don't want to go on signing on for too long, as it is very depressing. On the other hand, if I take the bull by the horns, sign off, declare myself officially self employed and try and make a go of my business, what support could I expect to get in the early stages of the business until it takes off?

Dogger69 wrote: »

The WP advisor should be able to refer you to someone that specialises in start up businesses, yes.

andyscott

If you go to the benefits section on the forum there was a post that is all about NEA with a few people who have good knowledge of NEA and what you could do. You would ahve to look far for it as I know there was posts made in the last 2 days.

tea_and_cake

Hi i know this was ages ago but did you get any help with this? I'm in a similar situation now and its crazy..

AP007

Yeah if you are on the WP the JC can not help with the New Enterprise Allowance scheme.

Any help you need you have to ask the WP.

tea_and_cake

Ive only been on the wp three weeks and just found this out today.. so its acting as a hindrance instead of a help.. even the guy i spoke to at business gateway admitted that the set up was crazy...

busy_mom_2

You cant claim NEA whilst on the WP as the government will be paying twice for you. The NEA allowance and then the contact with WP is once they get you into work or selfemployed after 6 months they get a nice fat bonus and a payment every week after.

ray1971

You would have probably been on JSA for a year before going onto the WP, so this would have been the time when you should have asked about self employment.
Unfortunatley its a missed opportunity now, if you are still U/E come the end of your WP ask your PWP coach to refer you to an NEA mentor asap.

imatt

In my view, the NEA is not worth the paper it’s written on. As I’m sure you’re aware, a jobseeker on NEA receives just £66 a week for the first 13 weeks and just £33 for the remaining 13 weeks making 26 weeks / six months in total. There is also an option apply for a loan of up to £1,000 max.

So one has to go from making £0.00 to be able to make a profit and pay themselves a viable wage within six months, preferably three. You have to decide how realistic this is....

When enquiring about NEA myself on more than one occasion, the JCP advisers were clueless about how it worked and had to consult a colleague. Post WP I was possibly due to start NEA. However, the NEA advisers lack of knowledge about a popular piece of photo editing software (he said he was a photographer) was just one of the things that put me off. That said anyone on NEA may well find the advice from a clued up adviser could be the most valuable asset. I am now starting my own business under my own steam.

As for being on the WP, ideally one would be able to attend EITHER the WP or NEA (not that the WP is fit for purpose anyway). As you are on the WP, you will note able to apply to join the NEA. Your best bet would be to see if your WP provider offers some kind of self employment support.

And make sure you speak to an adviser who knows this actually exists!

ray1971

A vast majority of NEA claimants also claim WTC which can be upto £52 per week, so your income goes upto £117 per week potentially, dont forget NEA is ignored as an income IRO calculations for housing and council tax benefits and WTC's.
NEA start up loans are now upto £2500 as from November 2013.
IMO a great scheme for the right people- not everyone wants to trade as S/E though.