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Self-Employed: Government Assistance

Answer

The self-employment element of the six month offer was introduced on 6 April 2009 and provides substantial advice and support to enable people to move into self-employment or to start their own business. There is an active programme of intensive support delivered by Business Link in England by Flexible Support for Business in Wales and by Business Gateway and Training for Work in Scotland. Those moving into self-employment will be entitled to a self-employment credit made up of 16 weekly payments of £50 to help with the transition into work and to underpin finances for the first few months of the business.There is no new deal for the self-employed although both the new deal for young people and the new deal 25-plus include options offering self-employment support. Under flexible new deal providers will also be able to provide self employment support. The new deal and six month offer routes into self employment are broadly similar. Both offer intensive support and advice to those who need it. To ease the transition into sustainable self-employment the new deals give customers an opportunity to undertake a period of test-trading for up to 26 weeks. Test trading enables the customer to begin work while remaining on benefits, whereas under the six month offer the self-employment credit is payable.We have anticipated the six month offer providing 500,000 opportunities for jobseekers and have made an investment in the offer of £0.5 billion. On current estimates we expect to be able to provide self employment support to 135,000 people.The offers are voluntary and are therefore demand led. The overall package is designed to be flexible and respond to customer needs. It is also possible that for any individual customer, a mix of offers may be appropriate.

Secondary information

Type

Written question

Reference

496 c1324W; 288005

Session

2008-09

Subjects

Employment schemes Self-employed

Link

View this Written question on www.publications.parliament.uk