Turn Freelance Work into a Steady Paycheck
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Revamping Tax and Benefits Policies: A Game-Changer for UK Screen Industry Freelancers' Livelihoods
The latest study, Make Freelancing Pay, suggests that innovative tax and benefits policies could be the key to enhancing financial stability for freelancers in the UK screen industries, potentially halting a distressing brain drain from the sector.
Funded by Creative PEC, this extensive research reveals that targeted tax and benefits reforms by the UK government could significantly boost disposable income for screen freelancers, thereby staunching the current talent exodus from this essential creative sector.
The film and television industries form a significant portion of the £124.6 billion contribution to the UK's economy, but their continued success hinges on a skilled and diverse workforce. A majority of this workforce consists of freelancers or project-based contractors, grappling with high income insecurity and sometimes arduous working conditions.
Professor Doris Ruth Eikhof from the University of Glasgow's College of Arts & Humanities and Dr. Hannah Randolph from the Fraser of Allander Institute, University of Strathclyde, led the research. They examined tax and benefits policies similar to those in six other countries to transform freelancers' financial well-being in the UK.
Professor Eikhof emphasized, "The UK's leading film and TV industries are at a crucial juncture. With the pandemic, production downturn, strikes, and cost of living crisis, we've seen an alarming number of skilled freelancers departing the sector. We urgently need groundbreaking solutions to entice and retain the talented individuals the creative industries require. Our research provides potential strategies that could aid in retaining the diverse pool of talent our creative industries rely upon, such as screen-specific basic income or housing support for creative workers."
Report Highlights:
- An Ireland-style basic income could jumpstart freelancers' disposable income by 50% or more. This would particularly benefit low-earning workers, disabled workers, and younger workers.
- Housing support for creative workers, available in South Korea, showed advantages for workers with dependent children over those without.
- French- and German-style policies that offer unemployment support and assistance with National Insurance Contributions were more advantageous for higher-earning workers, yielding relatively small overall improvements.
The study used microsimulation modeling based on policies currently employed in Germany, France, South Korea, Spain, Ireland, and Sweden. Researchers analyzed outcomes for six representative cases: average, high, and low-income freelancers; younger freelancers; disabled freelancers; and freelancers working outside London, both with and without children.
Screen industry freelancers currently earn roughly 80% of their counterparts' wages in other industries, dealing with greater income insecurity, work-related stress, and financial strains. Research by Bectu and the Film + TV Charity suggests that screen freelancers experience more income insecurity, occasional overwork, work-related stress, and financial pressures than those in permanent employment, driving talent drain from the screen industries.
Bernard Hay, Head of Policy at Creative PEC, shared, "Creative freelancers are a vital part of the screen sector workforce and its economic contribution. We often hear that evidence-based policymaking to support the creative freelance workforce is hampered by fragmented, inaccessible, or missing data. As the UK Government deliberates ways to strengthen job quality to boost economic growth and broaden opportunities, this report presents a crucial addition to the evidence base."
This project was spearheaded by British Screen Forum and the Film + TV Charity, with funding and advisory input from Creative Industries Policy and Evidence Centre, BFI, Bectu, Equity, Directors UK, and the Production Guild of Great Britain. Launched at an event organized by the British Screen Forum, the report was chaired by journalist Samira Ahmed.
Creative PEC is funded by the Arts and Humanities Research Council.
Photo by Myke Simon on Unsplash.
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Creative PEC | We supply independent research and recommendations for enhancing the UK's creative industries.
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Dive into an intriguing exploration of the challenges confronting the UK Screen Industry, potential solutions, and the role of tax and benefits policies in shaping a brighter future for freelancers. Stay updated with our latest insights.
- The research funded by Creative PEC, titled Make Freelancing Pay, indicates that reforming tax and benefits policies could increase disposable income for UK screen industry freelancers, addressing the current talent exodus from this sector.
- The film and television industries contribute significantly to the UK's economy, but their success relies on a skilled and diverse workforce, predominantly freelancers or project-based contractors who face high income insecurity.
3.Based on policies employed in six other countries, this study suggests that an Ireland-style basic income could boost freelancers' disposable income by 50% or more, particularly benefiting low-earning, disabled, and younger workers.
- Research by Creative PEC highlights that evidence-based policymaking to support the creative freelance workforce can be hindered by fragmented, inaccessible, or missing data.
- Professor Doris Ruth Eikhof advocates for solutions such as a screen-specific basic income or housing support for creative workers to retain the diverse pool of talent the creative industries require.
- The report underscores the need for policymakers to consider the evidence provided by this research to strengthen job quality, boost economic growth, and broaden opportunities in the UK's creative industries.