"Gig economy" companies free-riding on the welfare state.
In its report the Work and Pensions Committee says Government must close the loopholes that are currently allowing "bogus" self-employment practices, which are potentially creating an extra burden on the welfare state while simultaneously reducing the tax contributions that sustain it.
The report finds that
- The DWP needs to ensure that its programmes and resources reflect the positive contribution that self-employment can make to society and the economy. This may require an expansion of specialist support in JCP.
- DWP is seeking to support entrepreneurship without subsidising unprofitable self-employment. The existing Minimum Income Floor in Universal Credit does not get this balance right and risks stifling viable new businesses. The incoming Government should urgently review the MIF with a view to improving its sensitivity to the realities of self-employment. Until this is complete, the MIF should not apply to self-employed UC claimants.
Disability Rights UK says that a high number of disabled are likely to be self-employed and are often affected by the above criticised actions of the DWP highlighted in the report. We would like to see a system which provides co-ordinated and flexible support to self-employed disabled people as outlined in our response to industrial strategy consultation