Icon supports IPSE recommendations to address ‘financial crisis’ of freelancers

The report zeros in on how instances of late payment have increased since the start of the pandemic. Over a third of respondents to an IPSE survey (36%) said they had seen an increase in late payments, with only eight per cent reporting a decrease. Late payments can have a significant impact on both freelancers’ wellbeing and their financial circumstances.

IPSE’s research features the experiences of Icon member Lorraine Finch ACR and demonstrates the negative effects of this worrying phenomenon: 

“There have been times when payments have been so late and my cash reserves were low, that I have worried about being able to pay my bills... I do try and ensure I am paid on time by including a clear statement of payment terms on my invoices. Whilst the payment terms do make some clients pay on time, instances of late payment continue and ultimately, I have no way of enforcing the payment term.”

Flexible and fair support needed

Icon shares the concerns raised by  IPSE and fully supports its recommendations, especially IPSE’s call for more powers for the Small Business Commissioner to tackle late payments, “including the ability to launch investigations, impose fines and address complaints.” 

Icon agrees that while the appointment of the Commissioner in 2016 was an important step towards building a culture of prompt payment, the many instances of freelancers still experiencing late payment demonstrates the need for the Commissioner’s resources and powers of enforcement to be enhanced. Government and industry also have a part to play in raising awareness of late payment rights and sharing practical steps that individuals can take to reduce late payment.

IPSE urges Government to make COVID-19 support for the self-employed “flexible and fair” to support individuals who are in need. The serious structural problems of the Self-employment Income Support Scheme remain a lobbying priority for Icon and we echo IPSE’s calls for the Government to urgently address them. Government should make self-employment support more fair by expanding support to groups who have fallen through the gaps, including sole directors of limited liability companies and the recently self-employed.

This is also a good moment to draw attention to the advice offered by the Museum Freelance Network. Icon wholeheartedly supports the principles set out in this article by Christina Lister and Marge Ainsley. 

Find out more about Icon’s Coronavirus policy work. 

Are you concerned by the impact of the pandemic on your business or work? Support our advocacy work and help us tailor our support by completing the Icon Coronavirus follow-up survey by 9 December. 

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Image: Creative Commons