Labour decommissions Freelance Commissioner idea

The government has declined to back calls by the Lords to set up a Freelance Commissioner.

The Freelancer Commissioner would have been a statutory office, unlike Labour’s current commitment to a “Freelance Champion.”

According to peers, the commissioner would have been able to appoint people of its own choosing to the Office of Freelance Commissioner.

By being a statutory office, the Freelance Commissioner would have been more difficult to abolish — and more independent of government — than the Freelance Champion.

‘Freelance Champion will focus on creative industries freelancers only’

Perhaps more crucially, the commissioner was set to back freelancers across various sectors, whereas the incoming champion “will focus on freelancers working in the creative industries only.”

“The Freelance Champion has some similar characteristics to the Freelance Commissioner, but there are significant differences”, Lib Dem Lord Tim Clement-Jones continued in a House of Lords debate.

“[For example, the Freelance Champion] will not be cross-sectoral.”

‘Concerns about independence’

Official terms for the Freelance Champion state that the individual must be a member of the Creative Industries Council (CIC).

The champion is set to be based within the Department for Culture, Media and Sport (DCMS), and will report directly to DCMS ministers.

Any strategic plans drawn up by the Freelance Champion will require the department’s approval.

The Freelance Champion’s annual reports will also be subject to DCMS sign-off.  

“Although that structure ensures government engagement, it raises concerns about independence,” warned crossbench peer Lord Freyberg, speaking at the debate.

“Will this person, for example, have the freedom to speak plainly and critically when needed? How easily will they be able to make demands for change in other departments?”

‘Freelance Champion will not definitely improve freelancers’ lot’

Other peers have been even more plain-speaking in expressing their reservations about the Freelance Champion.

For example, “giving out advice”(the champion will be able to issue guidance) might make the government “feel good,” but it will “not definitely improve the lot of freelancers,” warned Viscount Colville.  

Ahead of the government’s decision not to take the Freelance Commissioner any further, although clearly anticipating it, Labour peer Lord Hunt called the Freelance Champion “half a loaf.”

‘Problems with IR35 status’

The other half would have examined a range of financial issues faced by freelancers.

In particular, a Freelance Commissioner would have probed pension provision, contractual issues, and even explored tax relief on training products, the peers suggested.

And if the government hadn’t also rejected an adjoining call from the Lords — that “freelancer” should be defined in law — even the burden of IR35 may have eased too.

Viscount Colville said: “If amendment 161 is accepted, the confusion over what constitutes ‘staff’ would be clarified…[thereby potentially alleviating] problems with the IR35 status [of contractors, which occurs] when HMRC claims…[they] are employed”.

‘Freelance Commissioner would have had enforcement powers’

A crossbench peer, Viscount Colville added that the government needed to ensure that the incoming Freelance Champion “can do much more than just deliver warm words.”

He continued: “A Freelance Commissioner would have clearly defined, effective decision-making and enforcement powers.”

Indeed, the Freelance Commissioner’s tabled but now rejected terms state that the commissioner would represent the interests of freelance workers in applying their rights.

‘Fair treatment of freelance workers, across different sectors’

The terms also state that the commissioner would have ensured the “fair treatment of freelance workers” across “different sectors.”

And according to cross-bench peer Nicholas Trench, Earl of Clancarty (who tabled the Freelance Commissioner idea), the commissioner would have ‘regularly engaged with sectors with high proportions of freelance workers’.

But the government isn’t convinced about the case for a Freelance Commissioner.

Rejecting the peers’ calls, Labour said it wants to let its employment status consultation run and then conclude, and it wants to stick to the creative industries-only Freelance Champion.

‘Freelance economy extends beyond the creative sector’

But on Friday, when asked about the government’s decision, the consensus of freelance working policy experts was disappointment.

Philip Ross, author of Freedom to Freelance and a co-founder of PCG (now IPSE), told ContractorUK:

“It is fantastic that there is a large amount of…[agreement] around the freelance economy from most of the Lords who spoke in this debate.

“But I think…the freelance economy extends beyond the creative sector and delivery riders.

“It covers every walk of life. Changes can be applied to support specific sectors, but [those changes] should not disadvantage others.”

‘Freelance Champion needs the power and remit to represent many industries’

Joshua Toovey, policy officer at IPSE (The Association of Independent Professionals and the Self-Employed), told ContractorUK:

“It’s absolutely right that this government seeks to address the many distinct challenges faced by the creative industries.

“We do, however, have lots of other freelancers in industries in IT, construction, engineering and other sectors that shouldn’t miss out on this additional representation in government.

“We want to see a Freelance Champion with the power and remit to represent these many diverse industries that make up our self-employed workforce.

“And we will continue to make that case to the government.”

‘Freelancers are extremely prevalent in many industries’

Lord Clement-Jones said much the same, albeit in vain, to Barness Jones, the minister for Future Digital Economy, who rejected the Freelance Commissioner proposal on behalf of the government.

The Lib Dem peer said: “It is clear that freelancers are extremely prevalent not only in the creative industries but in many other industries as well, including construction, professional, scientific and technical activities, business support, health and social work, IT, digital services and education and training.

“While welcome, the freelance champion for the creative industries under the sectoral plan does not go nearly far enough across the board in making sure that there is a real advocate and one with teeth who is able to influence policy towards freelancers across all those different sectors.”

‘Freelance Champion’s real test will be scope, authority, resources’

Software and Computer Services have been identified in the UK as part of the “creative industries” since 2001, under the then-Labour government’s Creative Industries Mapping Document.

Therefore, many IT contractors should (theoretically) benefit from the Freelance Champion.

But a former contractor who now heads up a contracting compliance body says the proof will be in the pudding, even if he welcomes the Freelance Champion, in principle and as an idea.

Chris Bryce, CEO of the Freelancer & Contractor Services Association (FCSA), told ContractorUK: “Anything that raises the profile of freelancers and ensures their voice is heard in policymaking is a positive step. The real test will be the scope, authority, and resources attached to the role

“If the champion is empowered to tackle the genuine challenges contractors and freelancers face, from late payment through to fair treatment in the supply chain, then it could be a very good thing indeed. But if it is a token appointment without teeth, it risks being little more than window dressing.”

‘Freelancer Commissioner would have done what we worry Freelance Champion won't be able to’

Told by Baroness Jones that the government won’t proceed with the Freelance Commissioner, the Earl of Clancarty, Nicholas Trench said: “The commissioner [would have had] those powers and the authority to do what we worry that the champion will not be able to do”.

Trench added: “We wish the champion well. We hope that the champion will be able to do these things. This is an area that we will come back to, not least to see how effective the champion will be.”