People out of work for six months will be eligible for financial package worth £2,000 to help them start their own business, the work secretary has announced.
Speaking at the Conservative Party conference in Birmingham, Iain Duncan Smith said the new Enterprise Allowance would aim to offer practical business mentoring support along with the finance to help unemployed people get new businesses up and running.
Mr Duncan Smith said the scheme, which represents a revival of the Thatcher government’s Enterprise Allowance, was intended to help support around 10,000 new businesses by the end of 2011.
He also confirmed the introduction of a universal credit – a radical simplification of the benefits system that will see claimants receive a single payment according to their needs, rather than a number of different benefits.
He said: “We are going to change this broken welfare system by breaking down the barriers to employment and ensuring that work pays.”