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Why are so many creative freelancers being left behind during the coronavirus pandemic?

Philippa Childs · 2 April 2020

To say that the last week was a rollercoaster doesn’t even begin to describe it.

Last Monday (23 March), Bectu moved its entire headquarters staff to remote working while responding to the stress, anxiety and financial uncertainty that freelance members were feeling as their work came to an alarming halt.

The government’s Coronavirus Job Retention Scheme (CJRS) announcement was welcome news for most of our employee members, and the detailed guidance that followed gave our negotiators a framework to work with to ensure that employed members are covered.

The CJRS allows employees to access up to 80% of their salary and is capped at £2,500 a month.

However, until last Thursday (26 March), there was a huge gap in the government support for our industries. Support for freelancers and the self-employed had not been mentioned – despite the fact that there are nearly five million in the economy and Bectu represents more than 20,000 of them.

These people, whose work had shut down before restrictive measures were put in place, were devastated that they were not covered by the CJRS and desperate for financial support.

The forgotten group

This led to a huge effort from freelancers and Bectu officials lobbying government, politicians and the industry to raise awareness of this forgotten group.

Our members were popping up all over the media outlining the consequences for them if they did not receive financial support. It was good to see the issue getting the attention it deserved.

Nevertheless, it felt like a very long week as the expected packaged for the self-employed was pushed back from Wednesday to Thursday.

Speculation increased throughout Thursday. The Trades Union Congress and Mike Clancy, general secretary of Prospect (Bectu’s parent union) joined a call with the Treasury to highlight our members’ plight.

We all hoped that our requests and calls for support had been heard and that rumours of upper threshold caps of £30,000 were not true.

Self-employment Income Support Scheme

When the Self-employment Income Support Scheme (SEISS) was announced, feelings of relief were soon followed by the realisation that many members in the film and TV industry would not be covered by the blunt instrument described.

And now they are really worried. One of the main questions we are being asked is how can the government overlook a thriving film and TV industry?

There is no easy answer. But from Bectu’s perspective, the Treasury approach of creating a fairly simple scheme will cause more problems rather than providing solutions.

We know there are a range of situations that the current measures don’t cover, including:

  • the newly self-employed
  • people who are PAYE and moving from contract to contract
  • limited companies who pay themselves through dividends.

The upper limit of £50,000 profit over three years is particularly harsh on those who live in London and the South-East.

It also fails to recognise single income households that have savings. These people don’t qualify for any help at all – not even Universal Credit.

The SEISS is clearly meant to put freelancers and the self-employed on the same track as employees. But the Treasury does not seem to understand the different situations people find themselves in.

What everyone needs right now is stability – and the entire economy needs financial certainty.

We will continue to offer constructive advice and insight to the Treasury – as well as campaigning to provide meaningful and urgent support for members who fall between the two schemes.

We have to keep asking the question: Why are so many creative freelancers being left behind during the coronavirus pandemic?

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