New Enterprise Allowance - Phase II

Transcription

1 New Enterprise Allowance - Phase II Mentor training manual v.1

2 Overview Please retain this document as an operational guide to the New Enterprise Allowance phase II. New Businesses The New Enterprise Allowance (NEA) programme is aimed at supporting claimants to start their own business and supporting some UC claimants already self-employed to develop and grow their business. For new business starts, NEA Phase 2 will support the creation of a business under any structure as long as the claimant has a genuine aspiration to build a sustainable business that will be based in Great Britain. The programme will support the move into self- employment for those people who want to start their own business. Pinnacle People provide mentoring support and financial assistance in the form of the NEA weekly allowance, administered by Jobcentre Plus (JCP), to claimants who satisfy eligibility and are referred to the scheme by JCP Work Coaches. Claimants will also have access to the Start-Up Loan schemes, should they need additional start-up financial support. This element of the programme, that is new business starts, is being used for ESF match funding. Link Up Start Up Initial assessment Pre-Trading support *up to 12 weeks Commence Trading Trading Support *up to 52 weeks Business Mentor Trading Mentor Existing Businesses For UC (full service) claimants who have been assessed as being in gainful self- employment and have earnings below their Minimum Income Floor (MIF), NEA Phase 2 will support the development and growth of the business by providing mentoring support to those claimants who satisfy eligibility and are referred to the scheme by JCP Work Coaches. This element of the programme, that is UC (full service) existing self-employed claimants, will not be used for ESF Match Funding. NEA Phase 2 is an entirely voluntary scheme which will consist of two customer journeys that are similar in parts, but with a slightly different focus. Business assessment Mentoring support *up to 12 weeks Trading Support *up to 52 weeks Business Mentor Trading Mentor

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4 New Businesses - Complete Journey 1. Link Up Start Up Session A pre-nea Phase 2 workshop called Link Up: Start Up, providing claimants with an overview of the impact, commitment and responsibilities of being self-employed. Participation on this workshop will be compulsory for all who want to progress to the new business start-up NEA Phase 2 offer. The start date must be offered within 15 working days of referral and that the outcome must be recorded in the Provider The Link Up Start Up session is up to 3 hours long and is generally scheduled in venues either fortnightly or weekly depending on referral rates. The purpose of this meeting it to educate and set expectations of the customers about the NEA programme and what to expect. This will filter customers into the Initial assessment stage and give the Business mentor greater control of the process. Each customer that attends the Link Up Start Up session should receive the Link Up Start Up flyer so that they know the process for next steps and can make notes. Provided material: 1. Link Up Start Up Presentation 2. Link Up Start Up Customer Flyer 3. Workshop Register (Digital only) PICS Process - Link Up: Start Up If customer attends: 1. Navigate to customer record on PICS 1. Open Link up: Start up activity 2. Check all dates are sitting correctly 3. Marked as Completed 3. Go back to Next Step 1. Choose Attended LU: SU option If customer fails to attend (FTAs): 1. Navigate to customer record 1. Open Link up: Start up activity 2. Check all dates are sitting correctly 3. Marked as Failed to Attend 3. Go to Customer Details tab and click Edit 1. Select Programme tab 2. Set Provider End code to Did not attend 4. Go back to Next Step 1. Choose FTA LU: SU option Send your digital attendance register to nea@pinnaclepeople.co.uk the same day.

5 2. Initial Assessment (IA) Providers will undertake a 30 minute initial assessment of eligible individuals within 10 working days of the referral date. Much of the information will already be covered in the Link Up Start Up session, so the Initial assessment will be focused on the customers business idea. Please note that for all accepted customers you will need to spend at least 5 minutes completing the ESF paperwork so please factor this in when managing your time. Provided material: 1. Initial assessment form 2. ESF 2020 Flyer 3. ESF 1420 Form 4. Customer Jornal 5. Mentor templates Actions: Update PICS for each customer Give each accepted customer the customer Journal Post all completed ESF 1420 forms via special delivery to once a week: NEA - Pinnacle People, 17th Floor, One Croydon, Addiscombe Road, Croydon, CR0 0XT PICS Process - Initial Assessment If a customer attend and is accepted: 1. Navigate to customer record 1. Open Initial Assessment activity 2. Check all dates are sitting correctly 3. Marked as Completed 4. Upload IA paperwork (see perfect example) 3. Go back to Next Step 1. Choose Accepted at IA option If customer attends but DNS: 1. Navigate to customer record 1. Open Link up: Start up activity 2. Check all dates are sitting correctly 3. Marked as Completed 3. Go to Customer Details tab and click Edit 1. Select Programme tab 2. Set Provider End code to the relevant IA rejection reason 4. Go back to Next Step 1. Choose DNS IA option If customer FTAs: 1. Navigate to customer record 1. Open Initial Assessment activity 2. Check all dates are sitting correctly 3. Marked as Failed to Attend 3. Go to Customer Details tab and click Edit 1. Select Programme tab 2. Set Provider End code to Did not attend 4. Go back to Next Step 1. Choose FTA IA option

6 3. Pre-Trading mentoring An enhanced mentoring offer compared to NEA phase one where the Business mentor will support the customer to prepare the business and provide a solid foundation for them to grow. The mentoring support will consist of a Business & Marketing Workshop, a Financial Workshop, three individual meetings, the first of which must be face to face and the remaining to could be completed via the phone or face to face. If completed over the phone written confirmation must be obtained from the customer prior. Mentoring support for maximum of 12 weeks and include at least 3 mentoring sessions, the first of which must be face to face. We anticipate that the length go time a customer spends on the NEA programme to be similar to the NEA Phase one journey at around 4-6 weeks. Development of the Business Plan and Cash Flow Forecast is the principle goal of this stage. The three meetings are mandatory and must be completed and evidenced prior to the business plan being submitted. Customers are required to attend the two workshops and these will typically be scheduled back to back with customers attend the first workshop (Business and Marketing) invited back to the Financial workshop in a fortnight or a weeks time. Customers are allowed to participate in the workshops back to back in the same day if requested but they must signed both attendance registers. Provided material: 1. Business & Marketing Presentation 2. Financial Presentation 3. Business Plan template 4. Cash Flow Forecast template 5. BP Assessment form 6. Workshop Register (Clerical and posted weekly with the ESF 1420 forms) 7. Meeting & Action Plan form 8. Mentor templates PICS Process - Pre-Trading phase Complete the following activities when they occur: 1. Financial Workshop 2. Marketing Workshop 3. Face to Face #1 4. Face to Face #2 5. Face to Face #3 6. Business Documents (For uploading files only) With all the above please follow the below steps for completing them: 1. Open activity 1. Check all dates are sitting correctly 2. Marked as Completed 3. For Workshop activities 1. Send the group register forms weekly along with the ESF 1420 forms by post, or complete digitally and to nea@pinnaclepeople.co.uk 4. For Face to Face activities 1. select whether meeting was actually Face to Face or Remote and upload evidence NOTE: first meeting must be face to face 5. When the customer has completed their BP and CFF and you are ready to submit their BP then we need to update the Business Documents activity 1. Upload BP and CFF to the file section of the Business Documents activity 2. Set the Business Documents activity to Completed status 3. IMPORTANT Ensure the Completed date is the date you submit the BP, this is going to carry forward onto the claim. 2. Navigate to Next Step 1. Choose BP Submitted option

7 4. Business Plan Approval Our Business Plan Assessors will administer an approval process for Participants business plans. Business Plans must be submitted, assessed and approved or not approved within the 12 weeks mentoring support period described above. They will assess the business plan and notify you of their assessment via so that you can then confirm with the customer. Provided material: 1. Mentor templates 5. Business Development phase Customers are allowed up to 13 weeks from the date the business plan has been signed off to then start trading. Business Mentors will retain customers on their caseload until they start to trade. Pinnacle People will evidence the commencement of trading and process the claim on PICS for the Business mentor when we receive confirmation from the Job Centre that they have signed over to the New Enterprise Allowance benefit. For customers that we have not received confirmation that they have started to trade the Business mentor will need to engage with the customer to find out why and if there is anything we can do to help. Provided material: 1. Mentor templates PICS Process - Pre-Trading phase 1. Navigate to customer record 1. Open Business Development activity 2. Update the status to the most appropriate dropdown 3. Add any notes into the activity as required 6. Trading support Once the customer starts to trade, the Business mentor will hand the customer over to the remote Trading mentor. The mentoring support from Pinnacle People will be available for up to 12 months/ 52 weeks from the date trading starts. Providers are to offer a minimum of four mentor meetings (at appropriate intervals) during this period. These will be administered by the remote Trading Mentor in the majority of cases. An online Enterprise Hub will supplement the delivery of the trading mentor and provide resources, discounts and forums for customers to interact with each other.

8 Existing Businesses - Complete Journey The elements of NEA Phase 2 for UC (full service) existing self- employed claimants is as follows, please note that this part of the NEA is not ESF match funded. 1. Business Assessment (BA) Providers will undertake a 60 minute initial assessment of eligible individuals within 10 working days of the referral date. You will be able to distinguish an existing business by them being booked for back to back Initial assessment slots on the IA booking report. The Provider will assess the current state of the business and decide if the provision could help the claimant (e.g. to be able to develop the business to increase earnings up to or above their MIF level), sifting out those who are not suitable. Provided material: 1. Business assessment form 2. Mentor templates Actions: Update PICS for each customer PICS Process - Initial Assessment If a customer attend and is accepted: 1. Navigate to customer record 1. Open Business Assessment activity 2. Check all dates are sitting correctly 3. Marked as Completed 4. Upload completed BA form 3. Go back to Next Step 1. Choose Accepted at BA option If customer FTAs: 1. Navigate to customer record 1. Open Business Assessment activity 2. Check all dates are sitting correctly 3. Marked as Failed to Attend 3. Go to Customer Details tab and click Edit 1. Select Programme tab 2. Set Provider End code to Did not attend 4. Go back to Next Step 1. Choose FTA BA option If customer attends but DNS: 1. Navigate to customer record 1. Open Business Assessment activity 2. Check all dates are sitting correctly 3. Marked as Completed 3. Go to Customer Details tab and click Edit 1. Select Programme tab 2. Set Provider End code to the relevant BA rejection reason 4. Go back to Next Step 1. Choose DNS BA option

9 2. Mentoring phase Similar to the new business start-up enhanced mentoring offer, the initial mentoring support will last for up to 12 weeks, with a minimum of 3 mentoring sessions over the 12 weeks and will include the Business & Marketing and Financial workshops. The mentoring support will consist of a Business & Marketing Workshop, a Financial Workshop, three individual meetings, the first of which must be face to face and the remaining to could be completed via the phone or face to face. If completed over the phone written confirmation must be obtained from the customer prior. Mentoring support for maximum of 12 weeks and include at least 3 mentoring sessions, the first of which must be face to face. We anticipate that the length go time a customer spends on the NEA programme to be similar to the NEA Phase one journey at around 4-6 weeks. Development of the Business Development and Growth Plan as well as Business Plan and Cash Flow Forecast are the principle goals of this stage. The three meetings are mandatory and must be completed and evidenced prior to the business plan being submitted. Customers are required to attend the two workshops and these will typically be scheduled back to back with customers attend the first workshop (Business and Marketing) invited back to the Financial workshop in a fortnight or a weeks time. Note that if a customer is not suitable to attend a workshop for example an accountant not benefiting from he financial workshop then this can be forfeited providing there is clear evidence on PICS. Provided material: 1. Business & Marketing Presentation 2. Financial Presentation 3. Business Development and Growth Plan 4. Business Plan template 5. Cash Flow Forecast template 6. BDGP Assessment form 7. Workshop Register (Clerical and posted weekly with the ESF 1420 forms) 8. Meeting & Action Plan form 9. Mentor templates PICS Process - Pre-Trading phase Complete the following activities when they occur: 1. Financial Workshop 2. Marketing Workshop 3. Face to Face #1 4. Face to Face #2 5. Face to Face #3 6. Business Documents (For uploading files only) With all the above please follow the below steps for completing them: 1. Open activity 1. Check all dates are sitting correctly 2. Marked as Completed 3. For Workshop activities 1. Send the group register forms weekly along with the ESF 1420 forms by post, or complete digitally and to nea@pinnaclepeople.co.uk 4. For Face to Face activities 1. select whether meeting was actually Face to Face or Remote and upload evidence NOTE: first meeting must be face to face 5. When the customer has completed their BDGP, BP and CFF and you are ready to submit their BP then we need to update the Business Documents activity 1. Upload BDGP, BP and CFF to the file section of the Business Documents activity 2. Set the Business Documents activity to Completed status

10 3. IMPORTANT Ensure the Completed date is the date you submit the BP, this is going to carry forward onto the claim. 2. Navigate to Next Step 1. Choose BDGP Submitted option 3. Trading support Once the customer has their BDGP approved the Business mentor will hand the customer over to the remote Trading mentor. The mentoring support from Pinnacle People will be available for up to 12 months/ 52 weeks from the date trading starts. Post BDGP Mentoring support will be based around reviewing and further developing the Business Development and Growth Plan, which will include short, medium and long term activities aimed at improving business earnings to equal to or above their Minimum Income Floor (MIF) and therefore, business sustainability. The mentoring support will last for 12 months and Providers will offer four mentoring meetings during this period (at appropriate intervals). An online Enterprise Hub will supplement the delivery of the trading mentor and provide resources, discounts and forums for customers to interact with each other.

11 European Social Fund (ESF) Match Funding You must meet ESF specific requirements set by the European Commission and failure to comply can result in a high financial risk for both DWP and you, as funds used inappropriately or for ineligible purposes and/or where the ESF requirements have not been met may be recoverable from you. The ESF requirements include but are not limited to the following: Evidence must be kept at all stages for participants who have started on provision and saved onto PICS for complete audit trail. What does this mean operationally? The following three tasks must be completed with any customers on the New Business Stream: 1. An ESF A3 poster (provided by Pinnacle People) to be displayed during all delivery not within a Job Centre. 2. All customers attending an Initial assessment to be given the ESF 2020 Flyer 3. All customers accepted at the Initial assessment to complete the ESF 1420 form clerically and posted to East Croydon

12 Eligibility Claimant Group/Eligibility: New Business Starts New Enterprise Allowance is available to the following claimants aged 18 and over and their dependent partners (*where indicated) aged 18 and over: Jobseekers Allowance (JSA) (*including dependent partners) Employment & Support Allowance (ESA) (*including dependent partners) Income Support (Lone parents or people claiming as sick) Some Universal Credit claimants. Eligible Universal Credit claimants will primarily fall within the following conditionality groups: all work related requirements the Work Preparation the Work Focussed Interview only. Continued in detail: Jobseekers Allowance (JSA) Eligibility commences from the date JSA (Income based or Contributory based) is awarded in all but the following instances: A claimant sanctioned for leaving their last employment voluntarily or for dismissal due to misconduct, is not eligible for NEA until their claim has been in place for 13 weeks. A claimant who ceased running their own business at any point in the 13 weeks prior to the claim date is not eligible for NEA until they have a continuous claim of 13 weeks. Additionally, their proposed business idea must be demonstrably different from the business that had ceased trading before they made their claim. For all JSA claimants, eligibility for NEA ends at the point they are referred to Work Programme/ Work & Health Programme or a mandatory employment programme (for example, a claimant taking part in Work Programme/ Work & Health Programme provision is not eligible for NEA). Eligibility resumes when Work Programme/ Work & Health Programme provision or the mandatory employment programme has been completed. Claimants already running a business, on a part-time basis, and claiming JSA must not be helped through NEA unless they are proposing to set up a demonstrably different business. Where you identify a claimant is already running a business and not proposing to set up a new full-time business you should refer the claimant back to the JCP Work Coach. JSA credits only claimants are eligible for NEA providing they meet the above criteria. Employment & Support Allowance (ESA) Eligibility commences from the date benefit / group status is established. If a claimant has been referred to the Work Programme/ Work & Health programme, or any other mandatory employment programme, they are not eligible for NEA. Eligibility resumes once the claimant has completed Work Programme / Work & Health Programme or the mandatory employment programme. Note: ESA claimants who ceased running their own business at any point in the 3 months prior to the claim date are not eligible for NEA until they have a continuous claim of 13 weeks. Additionally, their proposed business idea must be demonstrably different from the business that had ceased trading before they made their claim. ESA claimants under permitted work rules are not eligible to participate in NEA because the starting of a business will not take them off benefit. ESA Work Related Activity Group (WRAG) credits only, Support Group and Assessment Phase claimants are eligible for NEA.

13 Dependent Partners New Enterprise Allowance (NEA) is available to dependent partners of JSA and ESA claimants aged 18 and over (both claimant and partner have to be aged 18 and over). Eligibility commences from the date benefit / group status is established. Where dependent partners wish to participate in NEA, both the claimant and partner must fulfil the NEA eligibility criteria. The dependent partner of a claimant who ceased running their own business at any point in the 3 months prior to the claim date is not eligible for NEA until they have a continuous claim of 13 weeks. The dependent partner of a claimant who is on the Work Programme/ Work & Health Programme or who is due to start the Work Programme/ Work & Health Programme is eligible for NEA. Note: The dependent partner of a claimant who ends their claim can remain on NEA if the dependent partner has already been referred by Jobcentre Plus. Income Support claimants (Lone Parents or people claiming as sick) Eligibility commences from the date benefit / group status is established for people claiming as sick or lone parents claiming Income Support (IS) on the grounds of being a lone parent. This includes lone foster parents and single people with a child placed with them prior to adoption. Note: IS claimants who ceased running their own business at any point in the 3 months prior to the claim date are not eligible for NEA until they have a continuous claim of 13 weeks. Additionally, their proposed business idea must be demonstrably different from the business that had ceased trading before they made their claim. If a claimant has been referred to the Work Programme/ Work & Health Programme they are not eligible for NEA. Eligibility resumes once the claimant has completed Work Programme/ Work & Health Programme. Note: To be eligible for NEA the Lone Parent must start a business that takes them off benefit. Lone parents claiming IS who remain on IS and want to start child-minding in their own home are not eligible to participate in NEA. Universal Credit (UC) Eligibility commences from the date the benefit / group status is established in the following labour market regimes: Intensive Work Search regime; Work Preparation regime; and Work Focussed Interview regime For UC live service, eligibility is also for partners in the Light Touch regime if: they are earning below the individual AET but are in a household earning above the couple AET they are unemployed with a partner earning above the couple AET Note: UC claimants who ceased running their own business at any point in the 3 months prior to the date benefit / group status is established are not eligible for NEA until they have a continuous claim of 13 weeks after date trading ceased. Additionally, their proposed business idea must be demonstrably different from the business that had ceased trading before they made their claim If a claimant has been referred to the Work Programme / Work & Health Programme they are not eligible for NEA. Eligibility resumes once the claimant has completed Work Programme / Work & Health Programme.

14 Claimant Group/Eligibility: UC (full service) existing self-employed Eligibility for UC (full service) existing self-employed claimants whose income falls below their Minimum Income Floor (MIF) is as follows: UC (full service) existing self-employed claimants who are deemed to be gainfully self- employed; and the MIF applies or is likely to be in the near future. Note: If the participant is in the first 12 months/ 52 weeks of business trading they must not have already participated in any NEA provision (either in 2015 provision NEA programme from 05/01/15 to 31/03/17 or 2017 provision NEA programme from 01/04/2017 onwards) during those 12 months/ 52 weeks

15 Business Plan Guidance: A business plan will help to turn your business idea into a business. It is an outline to your business, the market you will operate in and how it aims to make money. The plan needs you to think through all the parts of a business, to plan how everything will work. A business plan is vital to help you understand your business better and is a blueprint document. The business plan will cover the following sections: Executive Summary This is an important section of the business plan; it explains the basics of your business. Describing your business details, your idea what you are going to sell. Businesses can sell two things products or services (Sometimes businesses can do both). Your business visions the aims and objectives and the personal vision and looking at who the key personnel in your business. Marketing This section is to describe the customers that might buy your product or service, your competition, the market trends and the legal stuff. Looking in detail at your marketing mix the ingredients that combine to capture and promote your product or service. The marketing mix explores the Four P s including: the Product/Service you will sell, the Price you will charge customers, the Promotional methods you will use and the key place the ideal location you will find your customers. Finances This section looks at three key elements your personal expenditure (Survival budget), a sales forecast and a cash flow forecast. A sales forecast will shows how many sales you are aiming at each month and how much money that will mean you receive. A cash flow forecast shows how much money you will spend on products and services if you achieve the number of sales in your sales forecast. Business & Marketing Workshop: 1 Your Business Details 2 Your Business Idea and your Elevator Pitch. 3 The Business Vision - How do you see your business growing? 4 Your Personal Vision - What s in it for You? 5 Your Market Research - Why the business will work 6 The Legal Stuff - What permissions and qualifications will you need? 7 Getting the message out - The 4 Ps of Marketing 8 Your Personal Statement - why you will succeed in your business 9 The Money Stuff

16 Financial Workshop: Sources of Funding and How Much Start-up Funding You Will Need The NEA Start-Up Loan Option Tax basics and HMRC Keeping Basic Financial Records 4 Key Elements of Financial Planning

17 Cashflow Forecast Guidance PERSONAL EXPENDITURE Complete your monthly personal expenditure as it is NOW (so before you start the business) For rent and council tax you need to put the complete amount that you pay before any benefit is received (what you would pay if you didn t get benefit) and then your benefit amount goes as income SALES FORECAST Ensure that your prices match those that are in your business plan Complete your service/product, your selling price and any direct costs (this will be the buying price if you are in retail, or the cost of any materials used) Enter the number of each service or product you are going to sell each month (if you are going to work 10 days in month 1, put 10 under month 1 and next to your day rate) It is sometimes easier to start at Month 12 (when you are hopefully near full capacity), and work backwards, remembering to take account of seasonal variations, and any holidays you may want to take, or weeks you won t be working Your sales figures and direct costs are automatically placed into your Cash flow Forecast CASH FLOW FORECAST In the pre-start up column, list any money that you are introducing into the business, whether this be from loans, grants or own money If you are introducing any equipment into the business, put the value of this as own cash coming into the business and equipment going back out in the pre-start up column Ensure that you are not starting the business with a negative bank balance You then need to add the costs of each individual item into your cash flow, checking on HMRC to ensure that you have the correct amounts for home working, mileage expenses and phone/internet costs The drawings are automatically calculated using your personal income and expenditure, however, you may need to adjust row 44, as these are benefits that will reduce as your profit level increases When you have completed your cash flow, you will need to use your profit levels to determine what level of Tax and Class 4 NI you will need to pay, and either enter this as a monthly or yearly provision If your company covers the VAT sales level, then you will need to check what VAT rate you will need to adhere to and enter this quarterly into your Cash Flow Forecast When all is completed check that your business is viable (that you have a positive amount of money in your bank each month), if there are months when it is not, look at your sales figures and then check that all your expenditure for that month is necessary