IPSE warns of risk to freelancers after inflation continues to rise


IPSE has responded to the ONS’s announcement today that inflation has risen to 3.1 per cent.

The increase, partly driven by rising transport costs, leaves inflation at its highest level since March 2012. It is hoped inflation has now peaked and will start to fall, after the Bank of England raised the interest rate for the first time in more than a decade last month.

As it stands, however, IPSE is warning that rising inflation is still squeezing freelancers. Freelancers are particularly affected by rising transport costs because they travel more than others for their work. They are also more severely affected by general price rises because they have to supply their own equipment.

Tom Purvis, IPSE’s Economic Policy Advisor commented: “With inflation hitting its highest level for over five years, people across the UK are continuing to feel the squeeze. Earnings have just not kept pace with rising prices, and this is a particular problem for freelancers, who have to supply their own equipment. Worse, this continued rise is largely driven by increasing transport costs, which particularly affect freelancers because they have to travel more for their work.

“As the self-employed feel the squeeze, the Government should do more to support them. In the Budget, it was announced the Government would be starting a consultation on the updated IR35 legislation and deciding whether or not it should be extended to the private sector. The Government should use this consultation to listen to the self-employed people who are seeing their earnings cut because of the changes to IR35 in the public sector. At a time when inflation is so high, self-employed people do not deserve to be punished further.”

 

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IPSE is the leading association for contractors, consultants, interims, freelancers and the self-employed. We strive to bring our members the most comprehensive and useful range of information and services and all the latest news about what affects your business.

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