The Social Security Advisory Committee (SSAC) has expressed its concerns that the current structure of the NIC regime for the self-employed provides incentives for employers to encourage ‘false self-employment’ among their workers, and has called upon the government to review the comparative levels of social security contributions and entitlement between employees and the self-employed. The SSAC also believes that the introduction of new single-tier pensions and automatic enrolment are having a similar effect.
Launching the report, Social security provision and the self-employed, SSAC chair Paul Gray commented: ‘Our report highlights a number of differences in the treatment of self-employed and other workers within the current social security system. With the recent growth in self-employment, it is important for the government to review whether the right balance in the social security system is currently being achieved between those in self-employment and employment.
‘We do not underestimate the challenge policy-makers face in assessing the respective interests of the self-employed, the employed and their employers. However, within that analysis it will be important to recognise some of the drivers for “false self-employment”. The position may be further complicated following roll-out of Universal Credit for the self-employed, and we therefore call on the government to establish an expert working group to look carefully at concerns that are emerging.’
The Social Security Advisory Committee (SSAC) has expressed its concerns that the current structure of the NIC regime for the self-employed provides incentives for employers to encourage ‘false self-employment’ among their workers, and has called upon the government to review the comparative levels of social security contributions and entitlement between employees and the self-employed. The SSAC also believes that the introduction of new single-tier pensions and automatic enrolment are having a similar effect.
Launching the report, Social security provision and the self-employed, SSAC chair Paul Gray commented: ‘Our report highlights a number of differences in the treatment of self-employed and other workers within the current social security system. With the recent growth in self-employment, it is important for the government to review whether the right balance in the social security system is currently being achieved between those in self-employment and employment.
‘We do not underestimate the challenge policy-makers face in assessing the respective interests of the self-employed, the employed and their employers. However, within that analysis it will be important to recognise some of the drivers for “false self-employment”. The position may be further complicated following roll-out of Universal Credit for the self-employed, and we therefore call on the government to establish an expert working group to look carefully at concerns that are emerging.’
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