On 5 October the Secretary of State announced that the Government will give extra help to unemployed people who want to start their own business through the New Enterprise Allowance. Initially the Allowance will be available in those areas likely to particularly benefit from an increase in the share of private sector employment.

The Allowance will be available to Jobseekers Allowance (JSA) customers who have been claiming JSA for more than 6 months.

Customers will get access to a business mentor who will provide guidance and support as they develop their business idea and through the early stages of trading. Once a customer can demonstrate they have a viable business proposition with growth potential they will be able to claim financial support which will consist of a weekly allowance payable at a level broadly equivalent to their JSA payments for 3 months, and then at half that rate for a further 3 months. And if they need start-up capital, they may also be able to access a loan up to £1,000 to help with their start-up costs.

The total package of support could be worth around £2,000 to each unemployed person who wants to start their own business.

We intend to trailblaze elements of the new offer starting in Merseyside from January, before rolling out the full New Enterprise Allowance into the remaining target areas from April and then nationally from autumn this year.

Partnership Opportunities for the Merseyside Trailblazer

We are seeking applications from organisations who wish to partner with us in delivering mentoring support for the New Enterprise Allowance Trailblazer in Merseyside. The successful applicant will accept referrals to the New Enterprise Allowance mentoring service in Merseyside for a limited period to 30 April 2011.

The deadline for applications is midday Tuesday 25 January 2011.

• Background information about the New Enterprise Allowance in Merseyside (22KB)
• Guidance notes for bidders (72KB)
• Application form (159KB) RTF
• Guidance for calculating JSA stock levels  (60KB)

http://www.dwp.gov.uk/adviser/updates/new-enterprise-allowance/