Hi,
I heard something about this and checked it out further, as my husband is unemployed. There are two schemes.
1. Back to Work Enterprise Allowance. For this you need to be getting job seekers for 12 months.
2. Short Term Enterprise allownace.
For both you need to make an appointment with the Job Facilitator in your area before you set up your business. Your SW office will tell you who this is. My husband has to wait 2 weeks for his appointment.
After your meeting you will then get an application form, which from what I hear is like writing a book to complete.
There was an article in the Sunday Times yesterday, which stated that only around 400 people are receiving these allowances. So it's either people don't realise they exist or it is hard to qualify for them.
I hope this was of some help.