Operational Guidelines: Back to Work Enterprise Allowance
From Department of Social Protection
Published on
Last updated on
From Department of Social Protection
Published on
Last updated on
The Back to Work Enterprise Allowance Scheme (BTWEA) is a non-statutory scheme designed to provide a monetary incentive for people who are in receipt of a qualifying social welfare payment to develop a business while allowing them to retain a reducing proportion of their qualifying social welfare payment, plus secondary benefits (please refer to section 17) in certain circumstances, over two years; 100% in year 1 and 75% in year 2 i.e. a total of 624 paid days.
The objective is to support certain DSP Customers to commence self-employment through setting up a new enterprise.
BTWEA is a non-statutory scheme approved by government. Government Decision S.27511b of 21 Iúil 1993 refers.
Scheme policy is administered by:
BTWEA is a support to qualifying Customers wishing to take that first step into self-employment. It assists in alleviating the risks involved with a new venture and provides an element of financial security along with business mentoring and supports.
BTWEA provides new enterprises with guaranteed income and therefore mitigates risk. This is not necessary where the venture is not a new enterprise as such a business can base its income potential from past experiences, thus mitigating the financial risks associated with commencing a new enterprise. Where BTWEA was approved and in payment for one business, the business ceases. The Customer cannot resume or continue their BTWEA payment for a different business until five years has elapsed.
How a Customer decides to structure their business is a decision for him/her to make.
BTWEA supports a sole trader, a partnership or a limited company.
From 1 July 2013 proprietary directors must own or control 50% or more of the shareholding of a company, either directly or indirectly. They are classified as self-employed and liable to pay PRSI at Class S.
The classification of proprietary directors who own or control less than 50% of the shareholding of the company will continue to be determined on a case by case basis, by this department’s Scope Section.
Scope is an advisory section which deals with queries relating to issues of directors, PRSI and insurability.
If any additional queries arise on the particular issue of directors, PRSI and insurability, these should be addressed to:
Further information is also available on PRSI and Family Employment or leaflet SW102 .
SW102: Family Employments and PRSI
Family Employment is an exception to the PRSI regulations.
Customers are not allowed to enter into paid employment as an employee, either in a full-time or part-time capacity while in receipt of BTWEA.
This will ensure that Customers are devoting 100% of their time to the business venture to maximise the chances of success.
One exception to this is where a Customer may be a contracted or a guest lecturer/teacher/trainer for a School/College/University or Department of Education. This applies to someone setting up their business in training where such an arrangement represents one element of a wider client base. For example, a customer who lectures once a month for the 2 year period may still only be for 1-2 hours in the evening and this would not impinge on the spirit of the BTWEA scheme.
The Case Officer should view this type of claim on a case by case basis before a recommendation is made.
Jobseeker's Allowance (JA) Self-Employed (SEMP) customers can apply for BTWEA but must give up their current business and deregister with Revenue to qualify and devote 100% of their time to the business e.g. part time musician.
A proposed business for BTWEA cannot be the same or similar to the JA (SEMP) business.
The Back to Work Enterprise Allowance payment is not subject to tax or PRSI. However, the income from self-employment may be subject to Tax or PRSI.
Customers in self-employment must pay PRSI at S Class rate and credits are not awarded during the period of the Back to Work Enterprise Allowance.
Note: Credit only payments are not eligible for BTWEA
A Customer may wish to pay voluntary contributions during this period and all queries should be addressed to:
Customers may avail of education/training options which are short and part-time and beneficial to the business needs. However, this should not impact with the Customer’s running of the business. This should be discussed with the Customer prior to commencement of BTWEA.
There are no further DSP support payments available other than what is covered under the Enterprise Support Grant (ESG) of up €2,500 for each recipient (See Appendix 3) .
All new enterprises approved for BTWEA must operate within the State.
If it is a genuine requirement of the business to spend periods of time outside of the State, this should be highlighted in the business plan at the time of application and supporting evidence supplied. The Customer must notify the Case Officer in advance of all business trips. A reasonable business trip shall be classified as being in the region of 3 to 4 days. Unnotified periods spent outside of the State may result in the claim being suspended and depending on the circumstances closed and overpayments may be raised.
Self-employment outside of the State does preclude a person qualifying for BTWEA.
In relation to an on-line business, the business must be based in Ireland and registered with Revenue.
When reviewing a new enterprise the tradability and viability of the enterprise should be examined. Ideally a Customer should have a sufficiently large and diverse Customer base . A subcontractor in the construction sector is likely to have only one Customer i.e. the principal contractor to whom they are contracted to. This one-to-one business relationship will usually last for the duration of a particular contract. In such circumstances a Customer should be advised that the BTWEA scheme is not available to them. The Customer can exit the live register and take up their new employment opportunity or in some instances the Customer may have an entitlement to Jobseekers payment (Self-employed category).
The Customer base of a new enterprise may be difficult to establish on awarding a new claim for BTWEA. However if there are concerns following the business planning approval and awarding of the claim they should be investigated further at the Case Officer’s 3 month review meeting. If a Customer cannot display a wide and diverse Customer base at this stage, or subcontracting is the sole business then a closure of BTWEA should be considered.
Case Officers may wish to refer to the link here, drawn up by the Revenue Commissioners which can assist in determining whether someone should be classed as an employee or self- employed
Code of Practice on Determining Employment Status
The Code of Practice on Determining Employment Status gives clear information about employment status taking into consideration labour market practices and developments, legislation, and case law.
A retained fire fighter is eligible to participate in the BTWEA scheme, while continuing as a retained firefighter, provided they are awarded the Jobseeker’s Allowance and fulfil the scheme requirements.
“Retained firefighter” is a person employed as a firefighter by a fire authority, e.g. County Council/Corporation, on a part-time basis and who is paid a retainer plus a fee for attendance at training and callouts.
It is classed as a Community Service which is assigned a special dispensation due to the nature of the employment. It is not necessary to have 100% dedication to the business in this instance.
BTWEA is not a means tested scheme and means from any other source are not assessable as long as they are received on or after the awarding of the BTWEA claim. A Customer should notify the department of a change of address . The request for the change in circumstance should be transferred to the relevant Intreo Centre with the exception of LO681 cases which is dealt with in Working Age Schemes Policy, Shannon Lodge, Carrick-on-Shannon.
Applications can be made for an increase in respect of a Qualified Adult and/or additional Child Dependents where applicable. In the case of claims based on a previous entitlement to One-Parent Family Payment or Carer's Allowance a Qualified Adult increase is not payable since it would not have been payable on the previous claim.
Where two customers are claiming Jobseekers Allowance, a MAX PAY applies, as there is a total household family income limit. If one partner applies for BTWEA the MAX PAY is the amount payable on the BTWEA. However the other partner may request a review of their JA rate and have their payment reassessed.
An upwards only rate change may be applied to BTWEA where a spouse/partner of the BTWEA recipient has a reduction in his/her income from earnings. This means assessment will be conducted in line with the primary entitlement. For BTWEA claims dealt by LO681 the review must be completed by the primary payment section and will then be implemented by LO681 as required. In all other instances the review is completed and implement by the local Intreo Centre.
If a Qualified Adult takes up insurable employment and/or has an increase in their earnings, this will continue to have no effect on the BTWEA claim.
BTWEA is payable at 100% of the primary payment for year 1 and reducing to 75% for year 2 subject to a maximum of 624 paid days i.e. 2 years.
Customers participating on the scheme are paid weekly via Electronic Fund Transfer (EFT) or Electronic Information Transfer (EIT) .
Separate payments are only payable when a Customer opts for an EFT payment. This is in line with the rules of the primary payment.
Customers are entitled to the appropriate Budget increases.
BTWEA cannot be claimed concurrently with another primary DSP payment with the exception of a Customer in receipt of BTWEA who subsequently becomes entitled to the Widow/Widowers or Survivor Contributory pension. In such cases the Back to Work payment continues at the single rate. No payment for a qualified child can be included on the BTWEA payment.
Back to Work Enterprise Allowance is payable, in line with the primary payment, to a qualified adult for 6 weeks after the death of the Customer.
It is also payable for 6 weeks after the death of a qualified adult or qualified child.
Carers Allowance and One Parent Family Payment are the exception as IQA is not payable on these schemes. Therefore, no 6 week payment after death is payable.
Customers in the scheme may retain any secondary benefits they were in receipt of prior to participation on BTWEA such as Fuel Allowance or Medical Card provided they continue to satisfy the appropriate means test.
Living Alone Allowance (LAA) is included. This is only relevant where the primary payment is Disability Allowance (DA) or Invalidity Payment (INVP).
Household Benefits Package & Free Travel ARE NOT regarded as Secondary Benefits with the exception of Disability Allowance and Invalidity Customers.
If a Customer is in receipt of any of the following payments, their ongoing entitlement should be reviewed by the Community Welfare Service at the Local Intreo Centre:
A person in receipt of BTWEA cannot claim Half Rate Carer’s Allowance. A Qualified Adult of a BTWEA recipient may also have an entitlement to Half Rate Carer’s Allowance in his/her own right.
Failure by Customers to comply with the rules and conditions of the scheme will result in closure of the BTWEA payment and, where identified, the raising of an overpayment or consideration of a prosecution where fraudulent conduct is suspected.
Approaching the end of year 1 (312 paid days) of the BTWEA claim a control letter BTW17A is automatically issued to the Customer informing them of the reduction to 75% rate for the final year of the scheme. The Customer is also required to sign the declaration, on the back of the BTW17A, of their continuing entitlement to the claim and failure to return the completed form will result in a suspension of the payment.
The onus is on the Customer to advise the department of ANY change in their circumstances at all times.
Staff are required to ensure that all information and personal data received in respect of BTWEA comply with the department’s Freedom of Information and General Data Protection policies.
Formal arrangements are in place for the exchange of information with other government departments /agencies in accordance with the law.
Any exchange of information should be compliant with Section 261 of the Social Welfare Consolidation Act 2005.
All forms relating to those under 25 years on BTWEA should display the ESF and European Structural Funds logos along with a statement informing Customers of ESF/ YEI involvement. All documentation must be available for inspection for at least 3 years from the 31st December of the relevant year after the Customer finishes on the scheme scanned or otherwise. This period may be extended by legal proceedings or justified request by the Commission. (See Appendix 2)
All Customer queries should initially be addressed at the local Intreo Centre and those that cannot be resolved may be submitted by email to BacktoworkAllce@welfare.ie
The BTWEA Customer must satisfy the following conditions immediately prior to commencing self- employment:
Eligible Primary Payments
9 months (234 paid days) continuously in receipt of any one of the following eligible payments immediately prior to taking up BTWEA with the exception of Illness Benefit as noted in the table below.
ELIGIBLE PAYMENTS | POINTS TO NOTE | |
• Jobseeker’s Allowance (JA) | ||
• Jobseeker’s Benefit (JB) | Not entitled to BTWEA. However, may be entitled to STEA. | |
• Jobseeker’s Benefit Self Employed (JBSE) | SEMP is a qualifying scheme only (Current business cannot be considered, must be a new enterprise) | |
• Pandemic Unemployment Payment (PUP) | A PUP recipient must apply and qualify for a jobseekers payment and be paid the jobseekers rate – No qualifying period required for PUP applicants | |
• Casuals – JA and JB | 12 months (312 days) in receipt of casual JA or JB immediately prior to their BTWEA application with a maximum of 30 days break in the Live Register i.e. Insurable employment worked days. (not applicable to self employed) See note on Casuals below* | |
• One-Parent Family Payment (OPFP) | ||
• Jobseekers Transitional Payment (JST) | ||
• Blind Pension (BPP) | ||
• Deserted Wife's Benefit (DWB) | Cannot revert to this payment once BTWEA is awarded – saver cases only scheme ended | |
• Disability Allowance (DA) | ||
• Widow’s, Widower’s or Surviving Civil Partner’s Non-Contributory Pension | Widows Contributory payment is not an eligible payment, however, it can be paid in conjunction with BTWEA payment (see section 17) DCA can only be paid on one scheme i.e. Widows Con. | |
• Carer’s Allowance (CA) | • Must cease caring responsibilities. • Carer’s Allowance may be transferred to another family member if they satisfy all the qualifying conditions. | |
• Invalidity Pension (InvP) | ||
• Farm Assist (FA) | Provided that the self-employment is not in relation to the holding and not the continuation of an existing operation | |
• llness Benefit (IB) | Where IB is the primary payment the Customer is required to have 3 out of the last 5 years in receipt of a combination of any of the qualifying payments. | |
• Combination of any other qualifying social welfare payments listed above (except Illness Benefit) | ||
• Qualified Adults (QA) Time spent as a QA on certain SW payments do not count i.e. DA, INVP, BPP, IB. | Periods spent as Qualified Adult on JA/JB/Any qualifying payment or a recent BTWEA payment count towards qualifying period for BTWEA once person has been awarded a qualifying social welfare payment in their own right. |
Where there is a break in an eligibility payment due to Maternity, Paternity Benefit or Parents Leave the Customer can be deemed eligible once this benefit was preceded and has been followed by a primary eligible payment and meets the required accumulated days as set out above.
*Casuals: A Case Officer at the initial assessment meeting must discuss with the casual Customer the number of days they have worked in the previous 12 months (312 paid days). If the casual Customer has worked in excess of or is due to exceed 30 days in Insurable employment worked days (not applicable to self employed) in the last 12 months (312 paid days) they should be informed that they are currently not eligible for the scheme. |
Periods spent on the following, count towards the continuous qualifying period, provided
1. They are preceded by a qualifying payment and;
2. The Customer has re-established an entitlement to a qualifying primary payment as the BTWEA is based on this rate.
• Full-time Solas/ETBs Courses |
• Rural Social Scheme |
• Community Employment |
• TÚS |
• BTEA / VTOS Springboard+, ICT |
• Supplementary Welfare Allowance (SWA) (do not have to have preceding qualifying payment) |
• Direct Provision (do not have to have preceding qualifying payment) |
• Time spent in prison (must be in the State) |
• Customers who are currently unemployed in Ireland (for at least 13 weeks) and on a qualifying payment can have recent periods of unemployment in other EU countries accepted.Customers should be asked to request a U1 form from the relevant social security authority that will give the details of employment & unemployment periods in the relevant EU Country |
Note: The 3 and 9 month reviews should be conducted as normal.
Mitigating circumstances can include a long-term illness or injury requiring prolonged absence from self-employment. The serious illness of an immediate family member requiring the Customer undertaking a caring responsibility.
Customers are allowed to resume the BTWEA once , where the BTWEA ceased due to mitigating circumstances (see section 26) .
A resumption must always be in respect of the enterprise originally approved for BTWEA.
Where the claim was originally transferred to the QA, the QA may also avail of the resumption where applicable.
Customers resume BTWEA at the original rate unless there is a change in circumstances (including budget changes).
A Customer who has previously participated in the BTWEA scheme may apply again:
1. Case Officer should establish that the proposed business is a new enterprise (section 6, definition of new business) and examine the proposal under the following headings:
The Case Officer should allow the application to progress with the LDC but document any concerns on financial sustainability for an LDC officer to examine and address in the final business plan.
BTWEA should not be considered where the supported new enterprise will likely cause displacement i.e. provide an unfair trading advantage over local competitors as a result of DSP support. If displacement is a concern this should be noted by the Case Officer on the assessment of suitability form and on referral should be addressed by the Enterprise Officer in the LDC.
Another consideration is where a Case Officer does not see the sustainability of a proposed new enterprise due to an existing high level of operation within that sector locally. However, a Case Officer may rely on the expertise of the LDC’s recommendation when considering the local market (city versus rural) relevant to the new enterprise proposal.
Seasonal, temporary or part time self-employment is not acceptable for the BTWEA. All business plans for a new enterprise should indicate year round income potential and operations.
Following the initial assessment meeting and agreement that the Customer is eligible for BTWEA and the business proposal is suitable the Customer should be requested to meet with the LDC as soon as possible to develop a business plan.
The initial assessment allows the Case Officer to highlight issues that may cause concern on the decision to recommend for BTWEA on completion of a business plan. The Case Officer should not generally prevent an applicant from working with the LDC at this stage. The issue raised should be addressed by the applicant in their business plan.
Where a Customer contacts the LDC prior to notifying DSP, they should be referred by the LDC to the Case Officer for an initial assessment of suitability/eligibility meeting prior to progressing with their BTWEA application process.
Role of a Local Development Company (LDC)
LDCs provide a range of complementary supports to support Customers who want to start up or grow a business. The supports include the provision of:
In addition, LDCs play a key role in supporting local communities and entrepreneurs to develop new business ideas and to enhance existing enterprises.
Typical enterprise supports which LDCs provide, include enterprise training courses in areas such as starting your own business, business planning, bookkeeping, sales and marketing, costing and pricing, health and safety, online strategy, social media and one to one mentoring and support from Enterprise Officers
At this stage the Enterprise Officer should:
Business cash-flow
The participant will need to demonstrate that their Business Plan is viable and that the business has sustainability potential.
Income from BTWEA should not be included as part of the business cash flow or income projections.
Consider issues of local displacement and market saturation, and address any concerns highlighted by the Case Officer.
o Completed Application form (BTW2),
o 1 year financial projection document
o A fully completed business plan which should include information to demonstrate the viability of the business proposed and confirmation of business structure
o Confirmation that the Customer has completed a Start Your Own Business Course (SYOB)
A Case Officer must review all documents received by the Enterprise Officer. Evidence of registration with the Revenue Commissioners. (Revenue on-line service (ROS) is acceptable).
This is a necessary requirement; however, this does not have to be provided until the 3 month review as initial registration results in an automatic issue of a COE form which can cause issues for Intreo Centres.
Where concerns were raised at the initial assessment stage, the Case Officer must be satisfied that these concerns were fully addressed by the LDC.
The Case Officer must then make a final signed recommendation on the BTW2 application form and forward to the Deciding Officer via the Activation Support Team (AST) in the claims area and/or the AST team under the FOBO model. All non Intreo claims should be forwarded to Working Age Schemes Policy, Carrick-on-Shannon, Co Leitrim.
All documents should be scanned to Activation Case Management, Employment Support Services, Action, and Document Creation.
Documents should be scanned separately and dated accordingly.
There may be two stages where a Case Officer may not recommend a Customer for BTWEA.
At this point the Case Officer should scan all documents as at section 36 above and notify Deciding Officer.
The Deciding Officer will then make the final decision and issue correspondence accordingly. The Deciding Officer should register the BTWEA claim on ISTS at this point and scan all documents to the BTWEA claim ONLY on BOMi.
A Customer who is not satisfied with a recommendation of a Case Officer may request a review in writing within 21 days.
The request must clearly state the basis of the review, enclosing any new evidence or any other information that may support their case.
The Back to Work Enterprise Allowance scheme is a non-statutory scheme and therefore not appealable to the Social Welfare Appeals Office.
1. Non Recommendation at Initial Assessment Stage
A re-examination and review of the initial assessment must be conducted by another experienced Case Officer/Area Manager, who was not involved in making the initial recommendation.
2. Non Recommendation after referral to LDC
The same guidelines apply as at “Non Recommendation at Initial Assessment Stage” above. However, in the case of a non-recommendation after referral to LDC a communication should also issue to the LDC Enterprise Officer.
The outcome of the re-examination and review should be clearly documented and communicated in writing to the Customer by the Deciding Officer and scanned to the BTWEA claim as previously indicated at section 37.
A participant should commence on BTWEA following the approval of their application. It may be necessary in certain circumstances to delay the commencement of the start date for BTWEA (i.e. until trading begins). This may occur where the new enterprise is awaiting confirmation of compliance with statutory requirements or availability of the identified premises for trading. The commencement date for BTWEA should be within 12 weeks of the approval date, unless the Case Officer agrees that a longer period is required.
Where the Customer does not commence trading within 12 weeks of the initial decision the Deciding Officer may review the initial decision and if appropriate re-affirm the decision to award BTWEA.
Letters/Checklists available on Stór for department staff.
The Deciding Officer (DO) has sole responsibility for making the decision to approve or refuse a BTWEA claim. The DO should take account of the recommendation of the Case Officer.
A Deciding Officer’s decision should be communicated to the Customer and Case Officer.
Where the DO does not accept the recommendation, they should discuss and clarify any issues with the Case Officer before making the final decision.
In the event of a refusal the decision must be clearly outlined.
The Deciding Officer should then scan all documents, individually to the BTWEA claim on BOMi.
Tasks should be assigned to the Case Officer for 3 and 9 month mentoring and monitoring reviews and the decision recorded on BOMi by the Deciding Officer at this stage.
A Customer who is not satisfied with a decision of a Deciding Officer may request in writing to have this decision reviewed.
Process is similar to steps above; however, review is carried out by another Deciding Officer.
The outcome of the review of this decision should be clearly documented and communicated in writing to the Customer, Case Officer and LDC Officer.
Divisions/Intreo Centres should put in place standard arrangements for dealing with re-examination and reviews of BTWEA recommendations and decisions.
Applications are dealt with as follows:
Intreo Customers
Applications from those receiving the following payments are dealt with by the department's Intreo Centre/Branch Office:
Customers of other schemes
Decisions for the following primary payments are dealt with by Working Age Schemes Policy:
There is a requirement on the Case Officer to meet with the Customer for both a 3 month and 9 month follow-up engagement to ensure that the business is operating and trading in accordance with the business plan and has remained in line with the scheme guidelines.
Where additional training or mentoring is requested by the Customer or identified by the Case Officer, this should be arranged and supported through the Enterprise Support Grant or from the Local Development Company.
As part of the 3 and 9 month review meetings the Customer will be required to provide the following documents:
• Evidence of registration with the Revenue Commissioners must be available at this stage if not previously supplied at application stage. This may include details from Revenue on-line service (ROS) (Revenue on-line services is also acceptable)
Evidence of trading e.g. invoices, order book, bank statements, etc.…
• List of business Customers
• Employee list (if applicable)
3 and 9 month mentoring and monitoring review forms must be completed and signed off by both the Case Officer and the Customer.
The 3 and 9 month mentoring and monitoring form must be completed, in full, and scanned along with any accompanying documents to the BTWEA claim on BOMi.
Each document must be scanned separately. The Case Officer must check their outstanding tasks and on completion of review, task should be completed on the BOMi system. If applicable a case note should be added.
Where the business is deemed not suitable following either the 3 or 9 month mentoring and monitoring review, the review documents should be completed by the Case Officer and the Customer.
The Case Officer should then issue a recommendation to the Deciding Officer to close the BTWEA claim.
If the Deciding Officer agrees with the Case Officer’s recommendation they should close the BTWEA claim.
The Deciding Officer should inform the Customer and the Case Officer when the claim is closed.
A Customer who is not satisfied with the decision to close the BTWEA claim may request, in writing, to have this decision reviewed. Refer to section 38.
Provision was also made in 2001 to introduce a pilot scheme in 3 Health Board areas to enable Long Term Unemployed return to work under the "Special Housing Scheme for the Elderly" and also their Unemployment Assistance @ 100% for two years. On completion the Customer would have the option to avail of the Back to Work Allowance Scheme.
Periods spent in receipt of Supplementary Welfare Allowance and Direct Provision will count towards the qualifying period for Back to Work Allowance/Back to Work Enterprise Allowance provided the applicant establishes an entitlement to a relevant Social Welfare payment prior to commencing on the scheme.
The European Social Fund (ESF) is the European Union's financial instrument for investing in people. Its mission is, to help prevent and fight unemployment, to make Europe's workforce and companies better equipped to face new challenges and to prevent people losing touch with the labour market. The operation of the programme is governed under EU Regulations 1303/2013, 1304/2013, 821/2014 and 1605/2002.
The ESF, with additional dedicated funding provided under the Youth Employment Initiative (YEI) aims to assist Members States in their efforts to put their Youth Guarantee implementation plans in practice. The YEI is specifically aimed at tackling unemployment for those under 25.
The department’s means of supporting young people who are not in employment, education or training is to provide them with access to a number of employment and other work-supported schemes. These include TÚS, JobsPlus and Back to Work Enterprise Allowance Schemes which will be eligible for YEI/ESF funding.
Expenditure relating to the under 25s on the Back to Work Enterprise Allowance Scheme will be re-claimed from both the ESF and YEI on a tripartite basis; for every €300 of eligible expenditure, €100 ESF and €100 YEI (i.e. ⅔) will be refunded by the European Commission with the balance being funded by the Exchequer.
The department will reclaim these funds from the European Commission through the Department of Education and Skills (DES) as the designated Management Authority (MA) as part of the 2014-2020 ESF Operational Programme (OP).
Each area within the process is required to fulfil its respective roles in its respective part of the process. The key players however in terms of ensuring proper observance of the ESF/YEI requirements are the Scheme Areas and EU Funding Compliance Unit (EUFCU). The role and respective responsibilities are set out as follows:
Intreo Centers (Responsible Person: Divisional Manager) are responsible to: |
(a) Ensure Customers meet the scheme eligibility criteria.
(b) Carry out on the spot verification checks whilst schemes are running.
(c) Ensure Customer details are correct and complete on relevant systems ISTS/CSS/PEX.
(d) Ensure publicity/communication guidelines and procedures from the scheme policy areas are followed.
(e) Ensure relevant documents are available for inspection by the bodies involved in the cascade (EU Commission, DES, etc.).
(f) Notify the EUFCU of any issues such as negative audit reports, review and known control weaknesses that may lead to YEI/ESF not being claimed.
(g) Notify the EUFCU of any overpayments relating to the YEI/ESF Customer.
(h) Verify the claim data sent by the EUFCU is correct for each Customer.
(i) Provide signed assurances that the relevant procedures have been followed. EUFCU will supply the relevant form annually for this.
Scheme Areas (Responsible Person: Scheme PO) are responsible to: |
(j) Incorporate the YEI/ESF requirements into the relevant procedures with assistance from EUFCU.
(k) Communicate these procedures / guidelines to the relevant sections.
(l) Ensure the verification checks carried out by the operational units are sufficient to provide a high level of assurance for the claims.
(m) Input the claims onto the ESF system (currently being developed by DPER through e-cohesion), once relevant assurances are received.
(n) Notify the EUFCU of any issues that may lead to YEI/ESF not being claimed.
(o) Ensure publicity/communication guidelines are followed.
Accounts Branch (Responsible Person: Accountant) are responsible to: |
(p) Maintain financial records
(q) Notify the EUFCU of any issues that may lead to YEI/ESF not being claimed.
EU Funding Compliance (Responsible Person: PO) are responsible to: |
(r) Construct and circulating guidance for the relevant sections.
(s) Collate data for all Customers to match claims.
(t) Circulate data to relevant parties for verification.
(u) Carry out verification checks to provide assurances.
(v) Ensure publicity/communication guidelines are followed.
(w) Aid Scheme Policy Areas in revising procedures to incorporate the YEI/ESF requirements.
(x) Submit claims received from the scheme areas with the relevant assurances to the ESF Managing Authority in DES.
(y) Co-ordinate monitoring visits from DES and audits by the Commission and the Financial Control Unit within DES.
The table below sets out the co-funding arrangements with the EU for the Back to Work Enterprise Allowance Scheme.
BTWEA | €1.550m | €1.550m | Payments to the Customers are eligible. Equivalent to 100% of Customer social welfare rate in year one and 75% in the second year | **1st Jan 2015 – 31st Dec 2017 |
To support the ESF/YEI claims for these schemes the following proof of expenditure and associated documentation is required (either physical or approved scanned versions of documentation are acceptable). The following list should not be interpreted as exhaustive:
Intreo/LO offices: Responsible Person: Divisional Manager |
(a) BTW2 application forms signed by Customers.
(b) Proof of registration with Revenue Commissioners.
(c) Business plan as agreed with the relevant partnership body.
(d) Evidence of the Customer eligibility.
(e) Documentation setting out the rate the Customer receives per week/month and how it was calculated.
(f) Evidence of any change of circumstances and revise rate.
(g) Evidence of checks/progress/monitoring/verification reports and audits carried out
Scheme Areas: Responsible Person: Scheme PO |
(h) Documents showing in respect of each programme as appropriate the technical specification and financial plans, funding approvals,
(i) Evidence of checks/progress/monitoring/verification reports and audits carried out
Accounts Branch: Responsible Person: Accountant
(j) Electronic Funds Transfer (EFT) and EIT files with ability to identify individual Customer payments
(k) Bank statements showing payment of EFT and EIT from the department/ post office
(l) Evidence that the aggregated amounts certified can be reconciled back to the EFT/EIT files and the agreed rate per Customer.
EU Funding Compliance Responsible Person: PO |
(m) Evidence of checks/progress/monitoring/verification reports and audits carried out
(n) Protocols and procedures to coordinate the co-funding
(o) Service Level Agreements with the relevant scheme areas
(p) Service Level Agreements with the Managing Authority
(q) Activity Implementation Plans
(r) Data Protection Protocols
(s) Operational Units signed verification forms (Form B1)
(t) The Secretary General’s verification Form (Form A)
Intreo Centre or Branch Office should ensure that a checklist (Appendix 3) is complete for each BTWEA Customer under 25.
All supporting documentation for eligible expenditure submitted for ESF co-financing must be available for a minimum of two years from the 31st December after the final accounts is submitted to the Commission. This means that the documentation above must be available for inspection for at least 3 years from the 31st December the Customer finishes on the scheme. This period may be extended by legal proceedings or a justified request by the Commission.
(a)
A statement advising Customers that Back to Work Enterprise Allowance receives ESF and YEI funding must also feature on all items. The suggested statement is:
“The European Commission is providing co-funding to this scheme for participants under 25 years. The scheme is being backed jointly by the Youth Employment Initiative (YEI), the European Social Fund (ESF) and the Department of Social Protection on an equal funding basis. You may be contacted by the department or its agencies for follow-up questions relating to ESF/YEI”
The data requirements that must be complied with in order to attract EU co-funding are extensive. EU Funding Compliance is working to develop a system through which all relevant data can be captured electronically on entry to the EU-funded operation. Separate instructions will be issued later in this year when a system is in place.
Compliance for co-funding requires that all bodies in the ESF cascade should ensure that the ESF projects are in conformity with the relevant State Aids regulations. EU funding Compliance will monitor this to ensure we are compliant. A key requirement in this regard is compliance with public procurement stipulations. All bodies are responsible for ensuring that projects/operations are in compliance with all public procurement requirements for public spending at their level in the cascade. Public procurement guidelines are available on the public sector procurement website . EU Procurement Directives can be accessed under the Rules and Guidelines on the EU procurement website .
This checklist relates to Customers participating on Back to Work Enterprise Allowance
Intreo Centres / Branch Offices should ensure that for these Customers the following is available for inspection for at least 3 years from the 31st of December after the Customer finishes on the scheme.
1. Check participant is under 25
2. Check claim is not a restart
3. Recommendation from Case Officer AND Enterprise Officer
4. Check 3 & 9 month review completed and forms scanned to BTWEA claim on BOMi
5. Bank account details match BTW2.
Part A (to be completed at Activation Stage):
(a) BTW2 form signed by the Customer (stored physically or electronically).
(b) Evidence of registration with the Revenue Commissioners.
(c) Evidence of the Customer eligibility (See scheme guidelines).
(d) Evidence of participation on scheme.
(e) Evidence of checks/progress/monitoring/verification reports and audits carried out.
Part B (to be completed at Payment Stage):
(f) Documentation setting out the rate the Customer receives per week/month and how it was calculated.
(g) Evidence of any change of circumstances and revise rate.
Where relevant documents should have the Structural Funds’ logo and the ESF logo and these should be 58mm by 19mm. There should also be a statement showing that the scheme receives ESF and YEI funding.
The suggested statement is:
“The European Commission is providing co-funding to this scheme for participants under 25 years. The scheme is being backed jointly by the Youth Employment Initiative (YEI), the European Social Fund (ESF) and the Department of Social Protection on an equal funding basis. You may be contacted by the department or its agencies for follow-up questions relating to ESF/YEI”
The following logos should be used for all ESF/YEI funded activity with a minimum size of W: 58mm X H: 19mm as below:
English versions:
EU ESF Logo
Irelands Structural Funds Logo
Irish versions:
EU ESF Logo
Irelands Structural Funds Logo
Enterprise Support Grant provides financial support to jobseekers that are approved and awarded /commenced on the Back to Work Enterprise Allowance
If two people are in receipt of BTWEA for the one business, only one ESG grant is payable.
Eligible Items for grant support as follows:
Category | Annual limit, € | Minimum contribution from applicant | |
Accountancy and related services including legal advice | Up to €500 | 20% | |
Advertising and marketing aids | Up to €500 | 20% | |
Business equipment | Up to €1,000 | 20% | |
Business training or mentoring (this can be offered free or at a reduced rate by Local Enterprise Officers (LEOs) or local development companies | Up to €500 | 10% | |
Business registration costs and fees | Up to €250 | 20% | |
Compliance, guidance and training | Up to €250 | 20% | |
Job-specific tools and equipment | Up to €1,000 | 20% | |
Office supplies and stationery | Up to €250 | 20% | |
Personal protective clothing and equipment | Up to €250 | 20% | |
Public liability insurance costs associated with setting up a business - no other insurance is eligible | Up to €1,000 | 20% | |
Short-term training on book-keeping, regulation, rollout of business plan, start-your-own-business and courses of training related to the start-up | Up to €500 | 10% | |
Signage | Up to €500 | 20% | |
Upgrading to premises where the premises is owned by the Customer | Up to €1,000 | 20% | |
Website registration, related services and production | Up to €500 | 20% | |
Combination of above in any 24-month period | €2,500 |
Public Liability Insurance is the only type of insurance covered under the ESG scheme. All other types, including vehicle insurance, should not be covered.
Except for training/mentoring costs, claims should not be accepted or approved for amounts less than €100.
EURES is co-funded by the Government of Ireland and the European Union. Visit eufunds.ie for more information.