New Enterprise Allowance 2018 with Universal Credit

nea2018

Hi everyone,

If you could help it would be greatly appreciated.

I am on Universal Credit (UC) and have been working on a business plan. I have done all the start sessions and so forth currently having business plan "signed off". I have been told by the Jobcentre Advisor/Work Coach when initially enquiring and at fortnightly meetings a bit about the process but he hasn't done New Enterprise Allowance (NEA) before for UC but only Jobseekers Allowance.

He has told me the NEA allowance is on top of the Universal Credit payments but since submitting my business plan I was a little insecure so I researched more about it online. (Well he said my UC would be ongoing but the UC element will reduce based on earnings (via HMRC), which is fair enough)

I have an appointment on Monday to "apply for the NEA allowance", but if the online information is correct, it appears I will be "signing off" from UC and be put on the NEA allowance instead. Is this correct?

This is no good for me as I struggle on the UC as an income. The later £33 per week amount is fine as I will have an income by then forecast higher than what I get from UC (£73 per week) but the £65 per week amount is much less than what I already get (£36.16 per month less).

It is going to take a couple of months before I begin trading (especially with the festive period) - developing the business before trading during such period - so I can't take the hit of losing £36 per month shortly followed by receiving just £143 per month (£147.82 less than at current). I am not applying for a loan (I don't have a credit history so will be ineligible) - so that cannot help me either. I am not really that set on getting an additional amount on top of UC, just don't want a reduced income so soon.

If leaving UC for NEA, am I penalised from reapplying for UC as soon as the business fails? Maybe I should have more trust in my adviser (or more confidence in the business whilst having personal cash flow issues) who seemed very keen to get me into business (is it just to get me off the UC books?) or is this all a bit of a scam? Clearly marketed all over the internet as a circa £2000 boost to help unemployed into business, well, not really if the bill for UC over the same period would be much higher. Clearly a saving!

Many thanks for your time reading this. Any pointers will be much appreciated. If anyone know of any alternatives to NEA which I can do whilst on UC it will be greatly received. My interest in the NEA was being exempt from seeking work whilst working on a business.

Ineededaname

Pretty sure NEA payments are in addition to UC and do not affect your UC in any way. The whole point is financial support to help you get the business going, it would be totally pointless if you had to use that money for your own living costs.

AG47

Ineededaname wrote: »

Pretty sure NEA payments are in addition to UC and do not affect your UC in any way. The whole point is financial support to help you get the business going, it would be totally pointless if you had to use that money for your own living costs.

Yes NEA is on top, you get it no matter what