April 05 ,2016 | by Hari Srinivasan

New Enterprise Allowance scheme aiding Britain’s startups

New Enterprise Allowance scheme

The Department for Work and Pensions has just released new data showing that the New Enterprise Allowance (NEA) scheme was responsible for launching 80,830 startups between April 2011 and December 2015.

Of all the businesses launched through the NEA, Liverpool was leading the way with 1,410 startups. Other places that attracted the most NEA-aided startups included Sheffield (1,250), County Durham (1,180), Birmingham (1,140), and Glasgow City (1,140).

Crucial for economy

Employment Minister, Priti Patel, said that small businesses were crucial to the UK’s economy and the NEA was helping people become their own boss. 

Research published in January 2016 showed that nearly 80 per cent of businesses started through the NEA scheme were still functional and trading when the survey was conducted, and over 90 per cent of these businesses were operational a year after they were launched.


The NEA offers startup support to individuals aged 18 and over who are claiming Employment and Support Allowance and Jobseeker’s Allowance. The scheme is also available to single parents and those who are claiming Income Support because of ill health.

A few claimants of Universal Credit can also benefit from it. The programme provides eligible participants with £1,274 for 26 weeks to help them establish their startups once they have a viable business plan.

St. Helens Chamber Startup Manager, Adrian Ellis, said that the Chamber has worked with many clients who had great business ideas and went on to create profitable businesses that enabled them to move away from benefits and contribute to the growth and development of the local economy.

Hari Srinivasan

Hari is the LSBF Blog's News Editor. He manages the editorial content on the blog and writes about current affairs, SME, entrepreneurship, energy, education and emerging market news.

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