Working for Work : Chapter 4 : Welfare to Work

Back to Work Enterprise Allowance

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The Back to Work Enterprise Allowance encourages unemployed people and those receiving other Social Welfare payments to take up self employment opportunities by allowing them to retain a proportion of their social welfare payment, plus secondary benefits.

  • The amount of time you can participate on the BTWEA is 2 years. -
  • The qualifying period required for BTWEA is 12 months provided you have an underlying entitlement to Jobseeker's Allowance -
  • You will receive 100% of your Social Welfare payment for the first year, and 75% for the second year. -
  • If you have previously participated in the BTWEA Scheme and exhausted your entitlement, you can participate a second time after a period of at least 5 years has elapsed.

Qualifying for the BTWEA

You will qualify for the BTWEA if you:

  • Are setting up a self-employment business that has been approved in advance in writing by a Job Facilitator or Partnership Company

And

  • Are 12 months getting Jobseeker's Benefit or Allowance. If you are on jobseekers benefit you must have an underlying entitlement to jobseekers allowance. If there is no jobseekers allowance entitlement, the qualifying period for jobseekers benefit is two years.

Or

  • Getting One Parent Family Payment, Disability Allowance, Blind Pension, Farm Assist, Incapacity Supplement, Pre-Retirement Allowance, Invalidity Pension, Carer's Allowance, Widow's/Widower's (Non-Contributory) Pension, Deserted Wife's Benefit/Allowance, or Prisoner's Wife Allowance for at least 12 months

Or

  • Getting Illness Benefit for 3 or more years -
  • Getting Farm Assist, providing that the self-employment is now in relation to the holding and not the continuation of an existing operation -
  • A person released from prison who satisfies the eligibility criteria

Qualified Adults - Spousal Swap

The Qualified Adult of a person who is eligible for the BTWEA may be able to do a 'spousal swap' to allow the Qualified Adult to take up self employment under the BTWEA. This involves the main claimant and the Qualified Adult exchanging places on the welfare payment. It is important to ensure this is done properly. Check with the INOU or your local Social Welfare office before doing anything.

Note: Once entitlement to BTWEA is established, a qualified adult is free to take up employment without affecting the BTWEA.

Helping you Qualify for BTWEA

  • Periods spent on FÁS or Fáilte Ireland training courses, Community Employment, Community Services Programme, Rural Social Scheme, FIT, FÁS Jobs Initiative and VTOS, count towards the qualifying period - only if you received a qualifying Social Welfare payment before participating in any of these.
  • Periods spent in receipt of Supplementary Welfare Allowance and Direct Provision count towards the qualifying period - only if you are receiving a qualifying Social Welfare payment after these periods.
  • Periods spent on Live Registers in the E.U. can be accepted as periods of unemployment provided you have signed the Live Register here for at least 13 weeks.
  • Time spent on other Social Welfare payments can be combined to make up the qualifying period and other additional qualification exceptions may apply, subject to your circumstances. Please check with the INOU for more details.

Not Qualified

  • Periods on the Revenue Job Assist or FÁS 'Job Start' are not considered as periods of unemployment and do not qualify persons for the BTWEA.

Additional supports available

  • Technical Assistance grants, of up to €1,000, are available to assist you in preparing a business plan, doing market research or product development.
  • Training grants are available to give you the skills necessary to run your business e.g., computer skills, management skills etc.
  • County/City Enterprise Boards develop enterprise in their area and are responsible for grant aiding and supporting new businesses with less than 5 employees (see Chapter 7).

Short-term Enterprise Allowance

There is a Short-term Enterprise Allowance for those not long on a jobseeker's payment and anxious to get started. There is no qualifying period. You can get immediate access to the allowance but you must meet the qualifying conditions:

  • To qualify you must have an entitlement to Jobseeker's Benefit and have 104 contributions -
  • The Allowance will be paid for a maximum of 1 year. It will end when your entitlement to Jobseeker's Benefit ends (that is, at either 9 months or 12 months)

If you are already on Jobseeker's Benefit, the period remaining to you on JB will decide the length of your short-term BTWEA. Your Jobseeker's Benefit will be paid at the full rate (100%) while on the Short-term Enterprise Allowance Secondary Benefits and the BTWEA / Short-term Enterprise Allowance.

Participants may retain any secondary benefits they were in receipt of prior to participation on either scheme.

Rent Supplement / Rental Accommodation Scheme

You may retain entitlement to a Rent Supplement. Your wages and payment on the Back to Work Enterprise Allowance will be taken into consideration when deciding on your entitlement to a rent supplement. See chapter 2 for details of the Rent Supplement means test. Persons receiving BTWEA and Rent Supplement may qualify for consideration for accommodation on the Rental Accommodation Scheme

Medical Card:

You will keep your medical card for 3 years.

Other Benefits:

You may retain your entitlement to: Fuel Allowance and Back to School Clothing and Footwear Allowance if your gross household income is less than €317.43 per week, not including the BTWEA payment.

Taking up the BTWEA

Contact your local Facilitator to find out how to apply for the Back to Work Enterprise Allowance and to find out about additional supports. Your local Social Welfare Office will be able to put you in touch with your Facilitator or you can phone Employment Support Services at LoCall 1890 927 999. If you live in a Partnership Area, you will need to have your application approved by your Local Integrated Development Company. Other supports such as access to training, funding etc, can also be sourced through the Partnership. An Enterprise Officer or Facilitator will look at your business proposal and may discuss certain aspects of it with you. You must not take up self-employment until you have received written approval from a Local Integrated Development Company or the Department of Social Protection. If you are accepted on to the Back to Work Enterprise Allowance scheme, you must register as self-employed with the Revenue Commissioners.

Last Updated: 31/08/2011 ^ back to top