MORE than 600 unemployed people across Worcestershire have launched new businesses since 2011 under a Government scheme to cut the benefits bill.

Your Worcester News can reveal how the New Enterprise Allowance, launched by the old Coalition, has also seen a total of 1,130 county people get mentoring support towards launching their own small firm.

The scheme allows people on jobseeker's allowance to get paid £1,274 over a 26-week period to allow their chosen business idea to officially start trading.

If the start-up firm fails they can go back on benefits, but they get mentoring along the way to try and keep it going.

Of the 610 start-ups across Worcestershire under the scheme Worcester and Malvern have had 130 each, while in Mid-Worcestershire there were 70.

Worcester MP Robin Walker said he believed the scheme was working - but the city's Labour Party wants to see more evidence of the impact.

Mr Walker said: "Running your own business is challenging and having done it myself I know it's not for everyone, but where people have the right support they can really succeed.

"On top of all the people who have been given hope and pride in building up their own business, there will be more who have been given a chance to work as a result of these businesses being there.

"Worcester is a fantastic place to be in business and I want to make sure it remains so.

"The battle with unemployment is never-ending and it is right that Government should keep reaching for new tools to help people find work.

"As the overall figures for unemployment have fallen, so it becomes more important to focus on those furthest from the work place and most in need of support."

Labour Councillor Joy Squires, the group's deputy leader, is chairing the city's scrutiny committee and will be investigating the scheme's findings this coming week.

Councillor Adrian Gregson, Labour group leader, said: "On the face of it the scheme has been a success, though much more detailed information is needed to be certain of this.

"I understand that the scrutiny review of employment in Worcester led by Councillor Joy Squires will be specifically looking at the scheme to see if the claims for it stack up.

"Small and micro businesses are crucial to Worcester's long-term economic success and we need to consider a range of measures, nationally and locally, to support them."

In Worcester unemployment has fallen from 2,375 to 1,045 in the same period, a decline of 56 per cent.