Yesterday, Boris Johnson announced a four-week delay to Covid lockdown easing in England. This announcement has raised major concern amongst already struggling businesses and industries, as despite the furlough scheme being previously extended, many are still questioning how they will financially survive amidst the delay. The news has also been a sharp below for freelancers and freelance-dominated industries, with millions excluded from government support and lack of work opportunities since the pandemic hit.
Throughout the pandemic, millions of freelancers were unable to claim grants under the Self Employment Income Support Scheme (SEISS), this included the newly self-employed, who did not file a 2019-20 tax return, company directors, or those who earned more than £50,000 or had less than half their income from self-employment. Alongside this, freelancers have also had to deal with the new IR35 tax rule, which has also left many at a further financial loss.
Today, this cohort finds themselves affected again by the Coronavirus pandemic and as such, it is now essential that the government recognises that support is a necessity until the economy once again opens up. Justin Small, founder and CEO of Future Strategy Club comments on the importance of the freelance sector, and urges the government to pay out to the newly self-employed:
“Yesterday’s announcement is yet another blow for the freelance sector, with many already excluded from government support and lack of work opportunities since the pandemic hit. It is now essential that we do more to support our freelance talent, as they are a vital part of our economy, with more than five million self-employed people in the UK, representing 15.3% of employment.
Freelance talent is particularly important at the moment, as short-term, outside talent can bring a fresh perspective to businesses who are struggling, and integrate a new, more flexible ethos to firms who are looking for the best way to accommodate new business models and legislations. In a time of economic turmoil and uncertainty, funds and resources may be low, utilising freelance talent also allows firms looking for specific talent to find it quickly and without breaking the bank.
Despite being a key part of the economy, freelancers often get overlooked by the government. This year has been particularly tough for freelancers, with many not eligible for financial support. It’s crucial that the government rethinks support for self-employed individuals, and extends SEISS to all freelancers.”
