New Enterprise Allowance

(asked on 4th February 2016) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what assessment his Department has made of the effectiveness of the new Enterprise Allowance scheme.


Answered by
Priti Patel Portrait
Priti Patel
This question was answered on 12th February 2016

Latest statistics show that 76,960 new businesses have been set up with the support of the New Enterprise Allowance (NEA).

A cohort study of the initial participants in the scheme showed that 78% of the first 2,960 NEA participants who started to trade remained off benefits for 52 weeks.

In January 2016 we published an evaluation report which showed that business established with the support of NEA had a sustainability rate of 80%, with over 90% of these trading for over 12 months. Around half of the respondents to the survey reported an expansion in their customer base or an increase in turnover. The majority of respondents were planning to expand their business in the future.

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