TUC warns ‘insecure work costing billions’

INSECURE, low-paid work is costing the Government billions of pounds in lost revenue, unions are claiming.

The TUC said its study suggested that low-paid self-employment, zero-hours contracts and other forms of precarious work were “starving” the public purse by reducing the tax take and increasing social security payouts.

The union organisation said low-paid self-employment is costing the exchequer £9.7 billion alone each year, with zero-hours contracts costing a further £614 million.

The “eye-watering” cost to the Treasury is the result of low-paid self-employed workers and those on zero-hours contracts earning significantly less than regular employees and so paying less tax and National Insurance and being more reliant on social security payments to top up their incomes, estimated the TUC.

General secretary Frances O’grady said: “Britain’s insecure work epidemic is not just punishing workers, it is starving the public finances too.

“The Government’s failure to clamp down on shady employment practices is costing the Treasury a fortune every year.

“That means less funding for our cash-strapped hospitals, care homes and schools.”

The union organisation repeated its calls for the Government to deliver the “long overdue” Employment Bill in Tuesday’s Queen’s Speech.

There is speculation that the measure will not be included in the list of planned legislation.

Ms O’grady said: “Ministers must stick to their word and deliver the long overdue Employment Bill.

“Leaving insecure work to flourish unchecked would be an act of betrayal.”