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Enterprise Allowance Scheme

Volume 83: debated on Monday 22 July 1985

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asked the Secretary of State for Employment whether he will ask the Chairman of the Manpower Services Commission to issue a public statement as to the precise circumstances in which the enterprise allowance scheme can be offered to persons seeking to engage in franchises; and whether he will make a statement.

The eligibility criteria for the enterprise allowance scheme are set out in "Guide to the Enterprise Allowance Scheme" and further advice on any points of interpretation can be obtained from jobcentres, which administer the scheme. The scheme is designed to help unemployed people set up their own businesses and not to support the extension of an existing enterprise. Accordingly, amongst eligibility conditions are requirements that the businesses established under the scheme should be new and independent. In many franchise arrangements under which the franchisor retains control of important aspects of the business such as sources of supplies, prices, market area, these conditions are not fully satisfied, although arrangements described as franchises are not by definition excluded.