Contract workforce ‘being kept from its full potential’

Freelance workers are “the natural accelerants” of the economy but the state needs to further pare back the compliance burden if ‘UK plc’ is to run at optimal performance.

Freelancing trade group, PCG, issued the alert to government after a 2,000-strong member survey found that the past 12 months had proved a “tough road” for contract workers.

Freelancers serving the public sector were hit hardest, the survey shows, where the drying up of work on local projects forced them to “revise their business plans”. 

In fact, 13% of freelancers had to migrate to the private sector in 2010 – demonstrating that, for some, securing a contract has required “adaptability”, added PCG managing director John Brazier.

But in spite of the public sector pressures, the group found that three quarters of the freelance sample were “in-contract” for at least 11 out of the last 12 months.

While sixteen per cent suffered a pay cut, 84 per cent reported their rate had either held steady or had improved; and an identical number said their future contract opportunities would do the same. Half believe pay will follow suit over the coming months and avoid negative territory.

“We are not at all surprised freelancers are in demand, they are the natural accelerants of the economy as UK Plc gets back on its feet,” Mr Brazier said, reflecting on the findings. 

“However… we still live in uncertain times and government must wind up the rhetoric and start cutting red tape and regulations to enable the freelance workforce to deliver its full potential.”