NEW Deal Questions Answered
What is the New Deal Self Employed Option?
This is one of the five options for young people (aged 18 - 24) who have been unemployed for 6 months or more.It allows you to set up a business of your own and to operate it for a 6 month period under 'test trading' conditions while remaining on benefits. There are also additional benefits (approximately £14.00 per week) payable during this period.
In order to enter the New Deal Self Employed option it is usually necessary to take some form of qualification with a recognised training provider (such as NVQ3 in Business Planning) and attend a training programme, prior to starting to trade. In addition you will need to produce a business plan and set up a bank account with a 'joint mandate' - in other words the training provider will have to countersign all cheques for the 6 month period.
This is because the intention is that you live off the benefits and build a balance in your account of the profit made in the business during the 6 month period. At the end of the 6 months you have a choice - either go into business full time and leave the benefits system or remain on benefits and shut down the business - either way the profit in the account is yours.
It is, in effect, a no-risk start up situation that many have used to develop successful businesses. In addition princes trust is an option for funding and they do look favourably on New Deal Clients. (click here for more information)
What is the next step?
Contact your local job centre, or New Deal Personal Advisor (NDPA) for further information - they will refer you to the local organisation that has been contracted to carry out the Self Employed option.
I have just finished a New Deal Option, without success, how soon can I start the Self Employed Option?
Usually there is a period of 6 months 'follow through' before you can start another option - however check with your NDPA.