Dáil Éireann Debate, Thursday - 28 May 2026
415. Deputy Ken O'Flynn asked the Minister for Social Protection if a review has been undertaken regarding the long-term sustainability or commercial viability of businesses approved under the back-to-work enterprise allowance scheme; and if he will make a statement on the matter. [40892/26]
View answerThe Back to Work Enterprise Allowance scheme offers support for people who are unemployed and who are interested in self-employment as a route to re-entering the labour market. The scheme supports people in receipt of a qualifying social welfare payment to develop a new business while allowing them to retain a reducing proportion of their payment over two years.
The Back to Work Enterprise Allowance scheme was last reviewed during 2016 with the review published in February 2017. The conclusions of that review were that the scheme was effective in its aim at transitioning the unemployed back into self-employment and not subsequently returning to the Live Register. Scheme participants were over twice as likely to remain off welfare supports than those not engaged on the scheme. The review also highlighted the importance of the links between the Department and the Local Development Companies and coordinating the decision-making and assistance to ensure the best outcome for the customer.
My Department has a comprehensive process to assess and approve a customer for the Back to Work Enterprise Allowance, which considers the sustainability and commercial viability of the business.
In the first instance in order to access the Back To Work Enterprise Allowance eligible customers must meet initially with an Employment Personal Adviser from the Department of Social Protection. The proposed new business is then examined under the following headings:
Sustainability
• Displacement
• Seasonality
• Market Saturation/Competition
Only if the Employment Personal Adviser is with satisfied with the proposal does the application proceed to the next stage.
At the next stage, the customer is then required to meet with an Enterprise Officer in the Local Development Company to develop a business plan. The Enterprise Officer assists the applicant with completing the application form, ensures the customer has completed a Start Your Own Business course and advises them of their obligation to register with the Revenue Commissioners. The Enterprise Officer ultimately either recommends or does not recommend the business for support.
Only businesses which are recommended by both the Employment Personal Advisor and the Enterprise Officer are approved for the Back to Work Enterprise Allowance.
This process is designed to ensure that the new business is commercial viable and sustainable.
I trust this clarifies the position for the Deputy.
