The Back to Work Enterprise Allowance scheme offers support for people who are long-term unemployed and who are interested in self-employment as a route to entering the labour market. The scheme plays a vital role in supporting the development of new enterprises.
The Back to Work Enterprise Allowance scheme supports people in receipt of a qualifying social welfare payment to develop a business while allowing them to retain a reducing proportion of their payment over two years with no restriction on the number of hours worked. A person retains 100% of their payment in year 1 and 75% in year 2.
The Short-Term Enterprise Allowance scheme provides support to recipients of Jobseeker’s Benefit and Jobseeker’s Benefit Self-Employed who wish to start up a new business. The allowance is payable for the duration of the participant's Jobseekers Benefit/Jobseekers Benefit Self-Employed claim.
Statistics are maintained on the number of applications awarded under the Back to Work Enterprise Allowance scheme over the period. They are not maintained on the total number of applications received.
Payment of this social welfare allowance for up to 2 years during the initial business start-up period is a valuable support and assists to alleviate the risks involved with starting a business. The scheme provides an element of financial security along with business mentoring and supports. There are no plans to provide an extension to the duration of the Back to Work Enterprise Allowance scheme.
The following tabular statement provides the number of persons in receipt of the Back to Work Enterprise Allowance and Short-Term Enterprise Allowance at end December 2021 and end October 2022.
I trust this clarifies the matter for the Deputy.
Tabular Statement
Year
|
No. of BTWEA participants
|
No. of STEA participants
|
Total Participants
|
2021
|
2,307
|
298
|
2,605
|
2022 (end Oct)
|
2,356
|
294
|
2,650
|