Short Term Enterprise Allowance - How Long?

musicformedia

Hi guys,

I'm on the STEA and working on my own business. I'm a bit confused as different people have different opinions on what happens with it.

The website says that it lasts for a year, and after that, you're out on your own.

Other people have suggested that if you're not earning enough by the end of the year, they will give you 75% of your entitlement the next year, then 50%, then 25%.

Can anyone advise what actually happens when it finishes - especially if you're not earning enough at the end of the year?

eddiehen

From welfare.ie:

The Short-Term Enterprise Allowance is paid instead of your Jobseeker’s Benefit for a maximum of 1 year. It ends when your entitlement to Jobseeker's Benefit ends (that is, at either 9 months or 12 months).

What you are referring to with the 75%, 50% etc is the "Back to work enterprise allowance".

musicformedia

eddiehen wrote: »

From welfare.ie:


What you are referring to with the 75%, 50% etc is the "Back to work enterprise allowance".

Thats what I thought - thats no longer available though is it? If so, what are the benefits of the STEA in comparison/why was I put on the STEA instead?

eddiehen

No, it is still available but there are different qualifying conditions:

You can qualify for a Back to Work Enterprise Allowance (BTWEA) if you are:

1. Setting up as self-employed in a business that has been approved in advance in writing by a Jobs Facilitator or Partnership Company and
2. Getting one of the qualifying payments listed below for at least 12 months

• Jobseeker's Allowance
• Jobseeker's Benefit (with an underlying entitlement to Jobseeker's Allowance)*
• One-Parent Family Payment
• Blind Pension
• Disability Allowance
• Carer's Allowance (having stopped caring duties)
• Farm Assist
• Invalidity Pension
• Incapacity Supplement
• Pre-Retirement Allowance
• Widow's/Widower's or Surviving Civil Partner's (Non-Contributory) Pension
• Deserted Wife's Benefit or Allowance
• Prisoner's Wife's Allowance

musicformedia

eddiehen wrote: »

No, it is still available but there are different qualifying conditions:

So basically, if you want to setup your own business, you're better sitting on your arse for 12 months on the dole, then getting onto the BTWA, rather than being proactive and trying to setup your own business straight away having been made redundant?

It just seems nuts that people who have been sitting on the dole for longer than me get more benefits than I do, having tried to setup a business?

eddiehen

musicformedia wrote: »

So basically, if you want to setup your own business, you're better sitting on your arse for 12 months on the dole, then getting onto the BTWA, rather than being proactive and trying to setup your own business straight away having been made redundant?

It just seems nuts that people who have been sitting on the dole for longer than me get more benefits than I do, having tried to setup a business?

If that's the most nuts thing you think about the department's schemes, then you're doing well! A lot of the schemes are archaic and remnants from the 80's, tweaked recently to produce savings for the IMF, etc. The STEA is a reasonably new scheme to allow people access to an enterprise allowance quicker, and with less red tape. But you're right, it is crazy. Not that that's going to change anything, unfortunately. If the business is struggling once you reach the end of your STEA, don't hesitate to contact your local office, you may be eligible for Jobseekers allowance depending on your circumstances.

musicformedia

eddiehen wrote: »

If that's the most nuts thing you think about the department's schemes, then you're doing well! A lot of the schemes are archaic and remnants from the 80's, tweaked recently to produce savings for the IMF, etc. The STEA is a reasonably new scheme to allow people access to an enterprise allowance quicker, and with less red tape. But you're right, it is crazy. Not that that's going to change anything, unfortunately. If the business is struggling once you reach the end of your STEA, don't hesitate to contact your local office, you may be eligible for Jobseekers allowance depending on your circumstances.

Wonder if at the end of the STEA scheme I could close my business, sit on the dole for 12 months, and then start it again on the BTWEA scheme!

cee_jay

No.

Persons will generally be allowed to participate in the STEA for a second time after a period of five years have elapsed, on re-qualifying for Jobseeker's Benefit with 104 contributions paid, subject to the same conditions as apply to first time applicants. A person who has previously received BTWEA may apply for STEA irrespective of the period that has elapsed. A person who has received STEA will not be eligible to apply for BTWEA until a period of five years has elapsed.