A Welsh think tank has called for a ‘new deal’ for self-employed people to boost their financial security.
According to the Bevan Foundation, despite the face that the average income of a self-employed person is less than two-thirds the income of an employee, self-employment has increased in the last ten years and now accounts for nearly one in seven workers across Wales.
Dr Victoria Winckler, Director, The Bevan Foundation said: “People who are self-employed face a triple penalty. They struggle to make ends meet like other low-income workers, but with added uncertainty and fewer sources of help. We want to see a new deal for self-employed people to help to solve these problems.”
The think-tank is now calling for the Welsh Government to do more to support self-employed people to run their business better to increase their incomes and provide micro-loans and bite-sized training.
Report author, Dr Mark Lang, said: “In my report for the Bevan Foundation, I have argued that it is time to offer the self-employed a new deal. This requires not just helping them to do business better, but also by providing more comprehensive access to protections when times are hard, and by removing any unfair barriers that may exist that impact the self-employed to a greater extent that the wider population. Although continued support for new entrepreneurs with sustainable business potential is therefore welcome, it is just part of the overall mix of intervention that is required.”
The report also argued that although business support can, and should, help self-employed people achieve rewarding, sustainable, and productive work opportunities, it is also necessary to provide support for low-income self-employed people who, for whatever reason, are finding it a struggle. Public policy must, therefore, see the whole person and their households, not just their current or potential business activities.
