Cash help scheme helps claimants get into business

In Rotherham, 490 businesses have been set up under the initiative between April 2011 and September 2015, new figures have revealed.

The data from the Department for Work and Pensions have also revealed that more than 9,100 new businesses have been started by entrepreneurial jobseekers in Yorkshire and Humber.

Support for the new firms has come from the government’s New Enterprise Allowance (NEA) scheme which was introduced in April 2011.

The NEA scheme provides benefit claimants who have a solid business idea with seed funding and a business mentor.

In Yorkshire and Humber the top five areas for start-ups being created are Sheffield with 1,190 cases, Leeds with 850, Doncaster 720, the East Riding of Yorkshire 680 and Bradford 670.

Across the country, 76,960 new businesses have been set up. 

A DWP spokesperson said: “The NEA helps jobseekers, lone parents and people on sickness benefits with a good idea to set up their own business.

“People on the scheme get expert help and advice from a business mentor who will help them to develop their business idea and write a business plan.

“If the business plan is approved, they are eligible for financial support payable through a weekly allowance over 26 weeks up to a total of £1,274.”

Employment minister Priti Patel said: “Starting up in business requires funding, support and advice, which is exactly what we offer through the New Enterprise Allowance scheme. 

“This scheme helps claimants with a good business idea to become their own boss so they can support themselves and their families, and turn their lives around.”