Benefits while starting own business scheme resurrection call from Derry & Strabane Council

Following a motion from Alliance councillor Rachael Ferguson and SDLP councillor Martin Reilly, which passed unanimously, council will contact the Northern Ireland Office, the Department of the Economy, and the Department for Communities to encourage them to introduce an updated version of the former scheme, to assist the creation of self-employment and jobs by individuals.

Addressing the chamber councillor Ferguson said: “The Enterprise Allowance was for anyone who was in receipt of government unemployment benefits to apply to and it was increasingly flexible and compassionate.

“The applicant would agree to set up a self employed business and earn money. The applicant opened a business bank account and use this for all earnings and expenses. Whilst setting up the business they were allowed to stay in receipt of their unemployment benefit and they were able to keep it for six months.

“At the end of the six months the applicant was then asked if they thought the business was viable, they had the choice to continue and stay on unemployment benefit with no penalty or change over or they could choose to be fully self employed.

“It has been reliably claimed that civil servants who were involved in it have said that over a thousand jobs were created across this which then had the knock on effect of new jobs being created.

“In trying to tackle the immediate cost of living crisis we are currently experiencing I think we need to look at initiatives like this that have worked in the past.”

"This could be adapted to include people here currently trapped in low paid or insecure employment. It could also be adapted to include short or medium term tax breaks for the likes of SMEs (Small and medium-sized enterprises) that are struggling to reinvest or are in the crucial early stages.

“I hope a simple motion like this where we write to the Northern Ireland Office, the Department of the Economy, and the Department for Communities and encourage them to introduce an updated version of the former Enterprise Allowance Scheme will help with a positive step forward in growing our economy.”

SDLP Councillor Martin Reilly meanwhile added: “Obviously we no longer have a functioning Assembly and ministers so we think it is incumbent on this council to do all it can to push the organisations and public bodies mentioned in the motion to try and deliver improvements for people and get those citizens out of unemployment and to tackle that stubborn rate of 28% inactivity that is driving people into poverty.”

Offering his support, Sinn Féin councillor John McGowan stated: “It’s nearly economic vandalism in terms of what is available if you are on benefits and want to start a business because what this did was allow people to start a business, keep their benefits and grow the business to a level where they could come off benefits and it was just taken away without explanation.”

Saying he didn’t understand why the scheme isn’t being funded, UUP Alderman Ryan McCready said: “I support the motion because it’s not easy getting employment and it’s even harder trying to be self employed.”

“If you have something like this programme and one of these people end up growing that self employment and getting off that benefit system and go on to having a successful business, they may go on to employ three to five maybe ten people, that itself is micro economics with this scheme.”

Agreeing this is a scheme that could benefit people, PBP councillor Shaun Harkin commented: “Right now we are seeing a lot of small businesses going to the wall because we aren’t seeing the government putting any measures in place to help them and that’s going to have a huge impact on jobs. We want to see people helped and this is one of the measures that can do that.”

The motion passed unanimously.

Gillian Anderson

Local Democracy Reporter