The Scarborough News

Self-employed workers earn thousands less than employees

- Www.thescarbor­oughnews.co.uk

Annual earnings for the selfemploy­ed in Scarboroug­h are thousands of pounds less than employedwo­rkers’,newfigures have revealed.

The Associatio­n of Independen­t Profession­als and the Self-Employed says a lack of supportdur­ingthecoro­navirus crisis has been “devastatin­g” for self-employed people, after they were left waiting three months for government grants.

The latest HMRC figures for the 2017-18 tax year show the median income for a self-employed worker in Scarboroug­h was £12,500.

The median is a measure of the average which takes the middle of a range of figures, to exclude very low or high earners.

For employed workers, the median income was £18,700 – £6,200, or 50%, more.

The figures mean that Scarboroug­h’s selfemploy­ed earn the lowest wages in Yorkshire and the Humber.

Under a government scheme announced in March to support the self-employed through the coronaviru­s crisis, those earning less than £50,000 per year could claim 80% of their monthly profits, up to a maximum of £2,500 per month. Three months’ worth of earnings were paid out in one lump sum – but workers had to wait until June for the payment.

An Institute of Fiscal Studies report found more than a quarter of self-employed people earning less than £50,000 would not have had enough savings and other liquid assets to cover three months of lost earnings – even if they had a partner who was also earning.

The Trades Union Congress has raised concerns about low wages for the self-employed, arguing some gig economy companies are using self-employment to get around paying the minimum wage to workers.

General secretary Frances O’Grady said: “While there are many who are happily selfemploy­ed, there are too many workers who have been forced into sham self-employment in the gig economy. Companies must not be allowed to dodge their obligation­s, like paying the minimum wage and guaranteei­ng their workers the rights they deserve.”

A spokesman for the treasury said the self-employment income support scheme is one of the most generous in the world, and had paid out £7.7 billion to 2.6 million people as of June 28.

Too many workers who have been forced into sham self-employment”

 ?? PHOTO: PA IMAGES ?? The latest HMRC figures for the 2017-18 tax year show the median income for a self-employed worker was £12,500.
PHOTO: PA IMAGES The latest HMRC figures for the 2017-18 tax year show the median income for a self-employed worker was £12,500.

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