A bit like a Citizen's Income, then?

Apparently, the DWP have dreamed up something called the New Enterprise Allowance:

NEA will be available to Jobseekers Allowance (JSA) customers who have been claiming for 26-weeks or more.

Participants will get access to a volunteer business mentor who will provide guidance and support as they develop their business plan and through the early months of trading. Once a customer can demonstrate they have a viable business proposition with the potential for growth in the future, they will be able to access financial support.

This will consist of... a weekly allowance worth £1,274 over 26 weeks, paid at £65 a week for the first 13 weeks and £33 a week for a further 13 weeks, and..."

Alternatively, they could just end means testing of JSA (£67.50 a week) and pay it out whether the claimant is working or not, trying to set up his own small business etc. That would be a lot simpler, wouldn't it?

I mean, if somebody is currently unemployed and claiming JSA of £67.50 a week and has spotted an opportunity for making some money, then he ought to do it anyway. Unless somebody is 100% sure that their new venture will pay off and is prepared to re-register from benefits entirely (a high risk strategy), they will either hedge their bets by illegally continuing to claim JSA while doing a bit of work on the side, or they will not take the risk of ending up without any money at all and not bother, preferring to stay on JSA.