Advanced search

Mumsnet has not checked the qualifications of anyone posting here. Free legal advice is available from a Citizen's Advice Bureau, and the Law Society can supply a list of local solicitors.

Starting a business while on income support

(6 Posts)
justhayley Fri 07-Nov-14 15:30:40

I'm currently receiving income support but thinking about starting a business.
Anyone have any idea how that works?
I have 2 children under 3, so can't take the risk of coming off income support before making a regular income with the business, as I don't have savings I can live on in the meantime. Is there another benefit or something I do in the meantime? I don't want to not try with the business because I can't afford to not be on benefits - that seems crazy, & the whole reason i want to start a business is so I don't have to work outside the house while my children are still small.
Please don't tell me I'm going to have to choose between being on benefits for years or starting a business but not feeding my family until it makes money shock
Ideas please.

Thank you

pottypeppa77 Fri 07-Nov-14 17:33:57

You can work up to 10 hours a week on income support but you're only allowed to keep the first £20 of whatever you earn (which doesn't give you much financial incentive to work).

The other option would be to come off of income support and instead claim working tax credits instead (you would need to work around 16 hours a week). You would still be entitled to housing benefit, council tax support and child tax credits. You would need to check one of the benefits checkers (eg turn2us) but you would probably get around the same in benefits as you do now. You could also ask the job centre about the New Enterprize Scheme (run by WENTA). This scheme is to help those on benefits start businesses. They expect you to put together a business plan but once this is approved you receive an allowance of £66 for 13 weeks and then £33 for a further 13 weeks. This allowance does not affect your other benefits in any way. I think you get around a year by which time you would need to be earning some where close to a living wage (ie 16 hours x national min wage which is about £100 a week)

TalkinPeace Fri 07-Nov-14 21:11:33

A slightly sideways approach, but send this lady an email
the wonderful Sam (who knows me on both this and my real name)
set up her business while a 29 year old single mum of 4 on benefits
and went through lots of stress on the way
I've known her from ebay over &&& years ago
but made it work with both benefits and rented accommodation


justhayley Fri 07-Nov-14 23:42:00

Thank you.
Pre children i never ever understood when people said they couldn't actually afford to work or it was hard to come off benefits etc, to be honest I thought it was a lazy persons excuse, but its actually not easy when a mum to come off them even when you want to.
If you can only earn £20 how can you grow your business, from earning over that to the point you can be self sufficient - all seems odd.

pottypeppa77 Sat 08-Nov-14 18:01:03

You can earn over over £20 a week on income support but anything earned over £20 would be deducted from your benefits so I suppose you could build up a business this way. It might be worth having a chat with your lone parent advisor about it?

Catsarebastards Sat 08-Nov-14 18:04:52

You can work up to 10 hours a week on income support

16 hours.

Join the discussion

Registering is free, easy, and means you can join in the discussion, watch threads, get discounts, win prizes and lots more.

Register now »

Already registered? Log in with: