Oral Answers to Questions

Stephen Lloyd Excerpts

Monday 28th November 2011 Commons Chamber

[Chris Grayling]

That is absolutely the reason we have put mentoring at the heart of the new enterprise allowance—so that participants have a mentor who will work alongside them, not simply to prepare a business plan but to ensure in the first few months of trading that they do not make the kind of mistake that can cause the business to fail immediately.

[Stephen Lloyd (Eastbourne) (LD)]

I am greatly encouraged by the efforts of the Minister and the Department for Work and Pensions to encourage entrepreneurship among the unemployed. The plan currently includes the provision of low-interest loans of up to £1,000, but sadly that amount does not go an awfully long way these days. I would welcome hearing from the Minister that the Department might consider, down the line, providing low-interest loans of up to £2,000, as that would make a significant difference.

[Chris Grayling]

My hon. Friend makes an important point. There are several aspects to the scheme that we intend to review and consider as time goes by to see whether changes can be made to make the scheme even more effective. I will happily give serious consideration to the point he raises.