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The Department supports people to be self-employed when it is the right thing for them to do to be financially self-sufficient. Key to this is continuing to help claimants in, or considering, self-employment to progress to a level of sustained financial self-sufficiency that does not exclude the possibility of better paid work elsewhere. This ensures fairness to claimants, but also taxpayers who fund the welfare system.
Work coaches offer tailored support to our claimants who are in self-employment through to help them to increase their productivity and earnings. Work coaches can refer low-earning claimants to mentoring support from New Enterprise Allowance providers and sign-post claimants to the other extensive business support which is already funded by the Government.
We recognise that it takes time for new businesses to grow and that even established businesses can experience difficulties. From September 2020, all self-employed Universal Credit claimants will be given the same 12 months’ exemption period to provide them with time and support needed to grow their businesses.