New Enterprise Allowance

Department for Work and Pensions written question – answered on 19th September 2018.

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Photo of Adam Afriyie Adam Afriyie Conservative, Windsor

To ask the Secretary of State for Work and Pensions, what the cost to the public purse has been of the New Enterprise Allowance in each of the last five years.

Photo of Alok Sharma Alok Sharma The Minister of State, Department for Work and Pensions

Between April 2011 and December 2017, New Enterprise Allowance has supported over 113,000 people to start their own business.

The Departmental spend on New Enterprise Allowance (NEA), comprising contracted mentoring costs and Allowance payments to participants who had started to trade from 2013/14 is set out in the table below:

£m

2013/14

2014/15

2015/16

2016/17

2017/18

Total NEA spend

58.8

44.2

20.2

29.1

22.1

Notes:

The reducing spend reflects:

  1. Rising employment rates
  2. The introduction of the Link Up Start Up (LUSU) workshop in April 2017 (to assess the viability of a claimant’s business) prior to starting on NEA
  3. A refund of costs in 2015/16 from suppliers from the Grant Funded phase of the NEA which ended in December 2014.

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