Arts and Creative Industries: Freelancers and Self-employed Workers
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The Parliamentary Under-Secretary of State, Department for Culture, Media and Sport (Lord Parkinson of Whitley Bay) (Con)
My Lords, I am grateful to the noble Earl for calling this important debate; like other noble Lords, I wish it could have been longer, but I think we have made some useful noise.
Let me start by stating clearly that freelancers make an essential contribution to the arts and creative industries, enriching both the economic potential of our sectors and the lives of the people they reach. Without them, our cultural and creative sectors simply would not survive.
As many noble Lords have noted, the creative industries grew one and a half times as quickly as the rest of the economy between 2010 and 2019, generating more than £100 billion in GVA in 2021. Roughly a third of the workforce in the creative industries are freelancers, double the average of the economy overall. We know that being freelance is a conscious choice for some people; being self-employed gives workers more flexibility and control. The Good Work Review published by the Creative Industries Policy and Evidence Centre in February shows that 72% of workers in the creative industries claimed autonomy over their hours, compared with 52% across the overall economy. But we know, as the noble Baronesses, Lady Bull and Lady McIntosh, and others said, that for many others it is not a choice but the only way to work in the sectors that they love and that have inspired them throughout their lives.
We recognise that working freelance comes with challenges: the absence of HR support, long payment terms and the expectation of unpaid overtime, as well as freelancers experiencing more acute insecurity in employment and income, to name but a few. The Good Work Review also showed that 45% of workers in the creative industries feel they have job security, compared with 52% in the wider economy. Such precarity also creates unequal access to opportunities in the sector, as noted by the noble Baroness, Lady Bull, and others, often based on a person’s capacity to work for free, which will stop our creative and arts industries being representative of our population—something that both the sector and the Government are passionate about achieving. It can also limit people’s ability to volunteer or give their time pro bono, compared with those who work for organisations that offer support for volunteering.
It is clear that many issues remain, and that working in the cultural sectors requires a great amount of personal dedication, but support has been more forthcoming than has been reported at times. Today I want to touch briefly on both the work the Government have done in the past and the areas where we can work together in future to ensure that our excellent freelance creative professionals can continue to thrive in our arts and creative industries.
On past support, it would be remiss of me not to touch on the Government’s unprecedented package of support during the Covid-19 pandemic, including bespoke support schemes for those who were self-employed. The primary route was the self-employment income support scheme. People who were self-employed in the arts, entertainment and recreation sectors claimed a total of £812 million-worth of support through this scheme. A full impact evaluation is due later this year, and it is important that we look at it carefully. I look forward to seeing in greater detail how the scheme helped to support our creative freelancers, but also what lessons we should learn should we, God forbid, face a similar situation in the future, as the noble Lord, Lord Berkeley of Knighton, and others, urged me to do.
In addition to this support, throughout 2020 and 2021 Arts Council England provided £7.5 million to eight benevolent funds supporting freelancers in the creative sectors. I arrived at DCMS as a Minister towards the tail-end of the pandemic, and was glad to be able to help find a further £1.5 million to support freelancers affected by the Omicron variant when that hit during the crucial Christmas period in 2021. I am glad that that was matched by £1.35 million, which came from the theatre sector, with great generosity.
Throughout the pandemic, the cultural sector benefited from an increase in the higher rate of cultural tax reliefs. We recognise that the after-effects of the pandemic are still with us, and of course acknowledge the pressures of the rising cost of living, which is why, at the last Budget, the Government extended these reliefs for another two years. These changes—estimated to be worth £350 million over the five-year forecast period—will help to offset ongoing pressures and boost investment in our creative and cultural sectors. They will support many new productions to be devised and to tour, and, I hope, create and secure a significant number of work opportunities for the freelancers working in the sectors.
Noble Lords have kindly noted our Creative Industries Sector Vision, which was published yesterday, looking through to 2030. That considers freelancers throughout in its focus on growth, workforce and impact. I have no doubt that large numbers of freelancers involved across the creative and cultural sectors will benefit from the new funding announcements that accompany this. I am pleased to be able to say to the noble Lord, Lord Watson of Invergowrie, that it includes a new £5 million of funding through to 2025 to expand Arts Council England’s support for live music venues. The sector vision contains a specific chapter on workforce and our ambitions for improving job quality, which I will touch on a bit more. It will be complemented by the cultural education plan, a joint piece of work by my department and the Department for Education, informed by a panel chaired by the noble Baroness, Lady Bull, which will ensure that we are giving opportunities to young people to equip them with the knowledge and pathways that they need to flourish and keep these sectors thriving in the future.
Both the Government and Arts Council England have taken proactive steps to provide support to freelancers. “Increasing our support for individuals” is one of the five themes of Arts Council England’s current delivery plan, and it sets clear, high expectations for all cultural organisations that work with creative and cultural professionals. It has online toolkits, which support practitioners and employers by setting out good-practice approaches on recruitment, working with, and offering fair pay for, creative and cultural practitioners, and directing people to other supportive resources. The Arts Council has also provided resources and training for freelancers on the important themes of business skills, safeguarding and networking.
I am pleased that, in 2022-23 alone, the Arts Council supported more than 1,200 creative and cultural practitioners through National Lottery Project Grants, totalling almost £30 million, and more than 1,500 individuals through the Developing your Creative Practice programme, who received a total of £14.5 million in grants. The Arts Council anticipates these funding streams to have created more than 19,000 work opportunities for freelancers, and expects there to be a further 60,000 opportunities for freelancers through its awards to organisations.
One of the several actions that the Arts Council pledged to take in its current delivery plan was to convene individual practitioners, cultural organisations, funders, unions and others to explore the steps we can take to improve support for freelancers. That will require more than just support from the Arts Council and the Government; it will require the leadership of industry too, but I am glad to say that this is happening.
Last spring, Arts Council England commissioned a collective of freelancers to develop and deliver the Freelance: Futures symposium through a consortium made up of representatives from Freelancers Make Theatre Work, Inc Arts, Migrants in Culture, Musician and Artist Exchange, people make it work, Something to Aim For and What Next? to discuss how we can improve support for people working in the creative industries and the arts.
Last June, I joined the What Next? and Freelance: Futures round table, where we discussed some of the specific issues facing creative freelancers and how the sector can move towards a more equitable future for the whole workforce. I am grateful to everyone who has taken part in that work, not least those who gave up their time without remuneration—a point we sincerely appreciate. We owe them our continued listening and to show the action that we are taking in response to the points they raised.
While we continue to listen to the voices of those currently in the workforce, we also have to remember the freelancers of the future, educating them and raising awareness of careers. I am glad to say that this will now be addressed at an earlier age, thanks to our Creative Careers programme. Last year, the Government relaunched the programme in secondary schools, delivered by ScreenSkills, with just under £1 million of public funding. This enables 11 to 18 year-olds across England to have better access to resources and information about the wide variety of rewarding careers available. We all agreed that these resources must include more information on freelancers and portfolio careers. As a result, ScreenSkills commissioned Alison Grade, the author of The Freelance Bible, to create bespoke content for young people considering becoming a creative freelancer. That material, both filmed and written content, will be available for free as part of the programme.
Inspiring people to take on creative careers is one thing, but just as important is the question of how to retain the current creative workforce and provide it with high-quality work. The Good Work review, which was co-funded by DCMS, is the first deep dive of its kind into job quality and working practices in the creative industries. The research indicates that there are many challenges, often related to employment status, in formal recruitment practices and the lack of formal training or ongoing professional development. Government and industry have committed to work together to address the review’s recommendations, which highlight specific areas where we can improve job quality for freelancers.
Again, the role of industry is critical here. The social enterprise Creative Access, which provides career-long support to creative professionals from underrepresented communities, recently reported that 50% of freelancers do not feel supported by the employers they work with. We need the sector to step up so that freelancers can have enjoyable and fair conditions and provide the high-quality work which we all benefit from. We continue to champion industry efforts to lead the way in this area, including Creative UK’s work, in partnership with many others, to develop the Redesigning Freelancing initiative. This aims to support the development of fair and equitable engagement with freelancers, the first phase of which is being supported by the English combined authorities.
A number of noble Lords raised IR35, also known as off-payroll working. That is of course a matter for HMRC. The rules were put in place more than 20 years ago to ensure fairness within the tax system. They aim to ensure that two people working in similar ways pay similar taxes and remove the incentive to work through an intermediary simply for tax reasons. However, we hear the differential impact that it has on people working in different parts of the economy. I am pleased to say that HMRC has worked collaboratively with film and TV companies, as well as unions including Equity and BECTU, to produce guidance in 2019 specifically for those sectors. The guidance was reviewed and updated at the beginning of June this year to incorporate new roles. My department continues to feed in representations from the sectors we are proud to champion.
I have heard the concerns raised regarding the Department for Work and Pensions’ minimum income floor policy for self-employed people and how that interacts with the creative freelance workforce. Support is available for self-employed people through universal credit, including for those working in the creative sectors. That is a matter for the Department for Work and Pensions but, as the noble Lord, Lord Cashman, knows—he and I had a meeting with Equity about it, and I then had a meeting with my counterparts in DWP—I am not shy in raising these matters on behalf of the sectors. I will continue to do so, following the points noble Lords have raised today.
The noble Earl invited us to discuss the case for a commission for freelancers. It is one that has been raised before, not just in connection with these sectors but across the whole economy. That is a matter which we could debate at greater length, and I think it would benefit from having responses from other departments. I have some sympathy with ways to champion the work of freelancers. However, I would not want the deliberation on that issue to hold up or hinder the progress on the work which we expect will have a tremendously positive impact on the support, such as through the sector vision.
Finally, the noble Lord, Lord Bassam, rightly raised issues in his home city. I am delighted to be visiting Brighton with him on Friday of next week, so we can take that opportunity to discuss them further in his home city.
With no time remaining, I reiterate what I said at the outset. Freelancers are the lifeblood of our arts and creative industries. The Government are deeply committed to supporting them, as evidenced by our support throughout the pandemic and beyond, and our focus on the future through the creative industries sector vision. I am grateful to the noble Earl and all those who have given us further material with which to work as we do so.