Conciliation service to help unpaid freelancers

A government plan to set up a conciliation service to tackle the problem of late payment for freelancers, the self-employed and other micro-businesses is being welcomed.

Announced on Saturday, the plan “goes a long way in helping” unpaid freelancers get the payments they are due without court action, says self-employment body IPSE.

The body added that the service, announced by ministers in recognition of Small Business Saturday on Dec 6^th, should make the ‘catch 22’ of being paid late less of a headache.

IPSE’s Simon McVicker explained: “The current catch-22 situation means that micro-businesses are often unable to chase clients for payment that isn’t forthcoming for fear of damaging important business relationships.”

New results of a survey conducted by IPSE with ComRes show overwhelming support from the general public for more to be done to tackle late payment.

The research asked a cross-section of 1,000 ‘traditionally’ employed and self-employed people living in the UK’s 40 most marginal constituencies about their views on the issue.

Seventy-nine per cent of respondents said they supported tougher rules to help prevent small businesses being paid late, and 78% backed such traders being able to settle disputes without going to court. Just 5% said they opposed stronger measures to combat late payment.

“The majority of the respondents to this survey are not self-employed but still strongly agree that more should be done to combat this issue,” Mr McVicker reflected.

“[Saturday’s] announcement shows positive action in line with public opinion and shows the government understand the issues that independent professionals face.”

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