An enterprising move, but is it enough?

I have been arguing for a return of the Thatcher-era Enterprise Allowance scheme for two years, so I was delighted to see David Cameron announce the extension of the New Enterprise Allowance today. It always made sense to allow as many people as possible to come off the dole and set up their own businesses. I only hope the inducements will be attractive enough.

I recently came across some brilliant public information films about the original scheme. You can check one out here if you want to be reminded of the last time the country faced mass unemployment.

The original EAS was effective because it was a straightforward bribe. Recipients were paid £40 a week, significantly more than the dole at the time and were able to stay on the scheme for a year.

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Under the new scheme, budding entrepreneurs will only be paid the equivalent of the dole (around £50 per week) for three months.