UK government scheme launches scheme to help jobless set up businesses

A scheme to help the jobless in the UK to set up their own firms is to be expanded to help around 40,000 new businesses over the next two years, prime minister David Cameron has announced.

According to Cameron the New Enterprise Allowance (NEA) scheme would help make the coming years "some of the most dynamic and entrepreneurial in our history". The government is hoping a swift expansion of the private sector would replace public sector jobs lost as a result of state spending cuts.

Under the NEA, people on unemployment benefits for upwards of six months would be offered up to £2,000 of financial support - including a start-up loan in addition to a weekly allowance as also advice from a mentor with experience in business.

To qualify, applicants would need to provide a business plan which their mentors would judge for viability.

The programme is to be launched later in the month in Merseyside and would be rolled out nationwide by the autumn. Though initially, the plan was to cover 10,000 people a year across 40 per cent of the country, according to Cameron it had been decided to double the scale of the scheme with the aim of helping to create 40,000 new businesses by 2013.

Cameron, who has undertaken a regional tour to promote the government's strategy for jobs and growth, said, "Throughout this year and beyond we will be focused relentlessly on supporting growth and driving job creation across our economy.