Claire Kerrane (Roscommon-Galway, Sinn Fein)
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335. To ask the Minister for Employment Affairs and Social Protection if participants on the short-term enterprise allowance require the support of the local development company; and if she will make a statement on the matter. [34091/21]

Heather Humphreys (Cavan-Monaghan, Fine Gael)
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The Department of Social Protection operates two schemes to assist people on certain social protection payments who wish to become self-employed; namely the Short Term Enterprise Allowance (STEA) and the two-year payment of the Back to Work Enterprise Allowance (BTWEA). There are currently over 2,550 in receipt of these supports, of which the vast majority (some 2,400) are in receipt of BTWEA.  

The STEA, currently paid to 150 recipients, provides immediate access to support jobseekers who qualify for Jobseekers Benefit to set up a new business.  Payment under the scheme is at the same rate and for the same duration as the entitlement to Jobseeker’s Benefit exists, which is between 6 and 9 months.

All new STEA applicants are informed of the services of their Local Development Company (LDC) and engagement is advisable. However as the STEA is payable for the duration of the applicants time-limited Jobseekers Benefit claim, it can be important to facilitate the earliest possible commencement of self-employment. Where a business proposal is sufficiently prepared, an applicant may be approved for the scheme without referral to a LDC. Where this occurs the applicant will continue to be informed of the valuable resources available through their LDC.

I trust this clarifies matters for the Deputy.