In his Budget, Rishi Sunak has an opportunity to right a long-running injustice.
Tracy Brabin MP is co-chair of the All Party Parliamentary Group on Gaps in Support.
The end of lockdown may finally be in our sights and we’re all looking forward to getting back to what we love.
However, we know that the impact of Covid-19 will be with us for generations – not least the economic inequalities highlighted and exacerbated by the pandemic.
As we turn towards a recovery, we must be sure no one is left behind. West Yorkshire, including my constituency of Batley and Spen, has faced some of the toughest and the longest lockdown measures of anywhere in the UK.
The government must pursue regionally focused support to ensure a fair recovery for all and, when the Chancellor presents his upcoming Budget, he must take into account that some areas are rebuilding from a more challenging base than others.
Equally, certain workers and sectors have suffered disproportionately from the lockdown – notably PAYE freelancers. These workers have fallen between gaps in government categorisation, not fully covered by the Coronavirus Job Retention Scheme, nor the Self-Employment Income Support Scheme.
PAYE freelancers are primarily found in the creative industries. They are often hired on short-term contracts by special purpose vehicles during film and TV production, meaning their employment status is precarious.
They have fewer employment rights than traditional employees, despite contributing PAYE tax.
In my role as co-Chair of the APPG for Gaps in Support, I have seen how these workers, through no fault of their own, have fallen into debt and destitution as the government has refused them the support they need.
Many in this tax-paying cohort have received no assistance throughout the entire pandemic.
Some have been denied access to furlough by missing HMRC’s cut-off, while others were simply denied furlough by their employers, with no opportunity for redress. Many in this cohort have fallen foul of the Self-Employed Income Support Scheme’s arbitrary ‘50%’ rule, which states a claimant’s self-employed work must make up the majority of their income.
It is simply unacceptable that these people, who have done absolutely nothing wrong, are approaching a year with no meaningful financial support from the government, and it could yet be many months until their workplaces are back up and running.
To expect people to live with more than a year’s gap in the earnings is cruel. Very few could manage it without losing homes or selling houses and cars – if they had them to start with.
Where the government has failed PAYE freelancers, Labour has stood up for them. Our Shadow Treasury team was right to call an opposition day debate to highlight those that have been excluded.
And yet, the government buries its head in the sand. So, the APPG for Gaps in Support has taken action and released a report recommending a series of proposals to deal with the ongoing exclusion of this group, backdated or significant grants, and an urgent government review into the status of PAYE freelancers ahead of the Budget.
Worryingly, the government has next-to-no useful data on this group. Industry bodies estimate that the 160,000 ‘agency workers’ recorded in an ONS population study is probably a good estimate of the number of PAYE freelancers in the UK. But this is far from exact.
The lack of clarity makes it easy for the government to ignore PAYE freelancers, and let them continue to fall through the gaps.
With theatres, film sets and venues closed for much of the past year, PAYE freelancers in the creative industries have been left without support or the prospect of employment.
I know first-hand how challenging this industry can be, even at the best of times. If I was starting out on my acting career now, as my two daughters are doing, I may well have given up in the face of precarious employment, few rights and the government’s indifference.
The trade union for creative practitioners, Equity, found that more than a quarter of its members are already working outside the industry, and a further 18 per cent are looking for other jobs.
These gaps in support will compound historic inequalities within the creative sector: the ONS reported a 44 per cent drop in BAME female workers in the arts sector between the third quarter of 2019 and the third quarter of 2020.
When we finally exit lockdown, we must be careful that there are artists and creative workers left.
In his Budget, Rishi Sunak has an opportunity to right a long-running injustice. There is an opportunity to not only provide PAYE freelancers with desperately needed support, but to enhance the employment rights of this vulnerable group.
Not only are thousands of workers still waiting for meaningful financial assistance, but the future of Britain’s cultural capital relies on the Government fixing this abysmal gap in support.
The APPG’s report is available here.
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