A review into self-employed automatic pension enrolment has proposed testing a range of different interventions to find the best solution for the self-employed sector.
The ‘True Diversity of Self-Employment’ has been produced by the CRSE (Centre for Research on Self-employment) in conjunction with the Institute for Employment Studies. The research found that there are nine distinct segments which make up the UK’s solo self-employed population, defined by their economic wellbeing, independence and security.
Key findings of the report include:
- Over half (53%) of the solo self-employed workforce exhibit high levels of independence and security.
- Eight of the nine segments of the solo self-employed are as satisfied, or more satisfied, than employees doing similar jobs.
- One in five (21%) solo self-employed workers – amounting to over 825,000 people – have been classified as insecure. They are more likely to be found among the UK’s cleaners, drivers, carers and labourers, as well as those in artistic occupations. People in this group tend to be less qualified and are much less likely to have financial security such as a private pension.
- Of the total solo self-employed workforce, 15% exhibit little autonomy or control over their work, and more must be done to clarify their self-employment status.
The Association of Independent Professionals and the Self-Employed (IPSE) welcome this news, with Jonathan Lima Matthews, IPSE’s Senior Policy Advisor, commenting, “This review is a definite step forward in the Government’s approach to pensions for the self-employed. Not only does it acknowledge the true diversity of the UK’s self-employed community; it also accepts that one-size-fits-all solutions simply will not work.”
“The report acknowledges that among the self-employed, while some groups have made provisions for later life, others need targeted interventions to get them saving. DWP has done the right thing by deciding to take the time to trial different solutions to fit this hugely varied sector. IPSE will continue its work in this field, sharing the results of our own research as soon as they are available.”
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