We committed in the Creative Industries Sector Plan to appoint a Freelance Champion, who will advocate for the creative sector’s freelancers within government and be a member of the Creative Industries Council. We will announce the appointment very soon.

Our priority has been that we take the time to get the role and appointment of the Freelance Champion right. As this is a new role, we have spent time working closely with the sector to develop the role’s remit, identify the priorities within that, and understand how the roleholder will engage with the sector once in post. We are working through the details and will be able to share more once the appointment has been announced.

HMRC collects information on self-employment income through tax returns submitted by self-employed individuals. Statistics relating to self-employment income are published and can be found as part of HMRC’s Survey of Personal Incomes (SPI), which is one of the Government’s principal sources of information on personal incomes and Income Tax liabilities. Statistics on self-employment income are presented in Tables 3.9 and 3.10 of the latest SPI publication. The latest published SPI statistics are linked below:

https://www.gov.uk/government/statistics/personal-incomes-statistics-for-the-tax-year-2023-to-2024

While the Taylor Review of Modern Working Practices continues to be a valuable resource, the government is focused on delivering the plan to Make Work Pay to bring employment rights legislation into the 21st century. This includes measures to support the self-employed with new legislation on late payments that will ensure small businesses and the self-employed are paid on time. The government is also exploring additional measures to strengthen protections for the self-employed including the right to a written contract.

The government is also committed to consulting on employment status in due course, which was raised in the Review.

This Government is committed to ensuring that the tax system operates fairly and efficiently and creates a level playing field for compliant businesses. Most businesses pay what they owe but a minority fail to register with HMRC or only declare a portion of their earnings.

VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. At £90,000, the UK has one of the highest VAT registration thresholds in the OECD, meaning the majority of businesses are not in the VAT system.

The VAT registration threshold applies to individual businesses. As a result, businesses structured differently – such as those employing staff directly and those made up of self-employed individuals – may have different VAT obligations depending on their individual turnover. We consider the impacts on small businesses as well as the wider economy and public finances as part of the policy making process.

HMRC is committed to robustly tackling false self-employment and will investigate evidence that suggests companies may have misclassified individuals for tax purposes. In these cases, HMRC will identify the facts and take steps to ensure the correct tax and National Insurance Contributions are paid, along with any interest and penalties due. Where National Minimum Wage underpayments are identified, HMRC takes appropriate enforcement action on behalf of the Fair Work Agency (FWA).

The Government recognises the important social and economic role of the hair and beauty sector, which not only contributes to people’s well-being, but also plays a vital role in supporting local economies across the country. We have published GOV.UK guidance and YouTube videos on tax obligations specific to this sector to enhance understanding and enable businesses to comply with their tax obligations. The latest guidance was published in May 2025; this included the Check Employment Status for Tax tool (CEST).

The Government is undertaking a Review of Parental Leave and Pay, which provides an important opportunity to consider whether the current system meets the needs of modern working families, including those who are self-employed.

The Review will conclude in early 2027, at which point the Government will set out its findings and next steps for any potential reforms.

Some employers choose to offer more than the statutory minimum pay, sometimes referred to as ‘occupational’ or ‘contractual’ parental pay. This is a matter between employers and employees.

The Department for Culture, Media and Sport recognises the vital contribution that freelancers provide to the cultural ecosystem of this country. We are taking a number of steps to support this part of the creative workforce, as set out in our Creative Industries Sector Plan, and that is why we will shortly announce the appointment of a Freelance Champion, who will advocate for the creative sector’s freelancers within government.

The government has made no assessment of the financial impact on freelance workers in the UK television and creative industries of Covid-era Government-backed loans issued to limited company contractors.

The Government is committed to ensuring that people in financial difficulty have access to free, impartial debt advice. Through the Money and Pensions Service (MaPS), the Government funds a range of national and community-based debt advice services across England, with equivalent provision in Scotland, Wales and Northern Ireland delivered through the devolved governments.

Among these, MaPS provides funding for Business Debtline, delivered by the Money Advice Trust. This dedicated service supports self-employed people, sole traders and small business owners who are struggling with debt by providing specialist, impartial advice that recognises and understands the unique pressures of running a business.

Since 2024, Business Debtline has supported around 50,000 people, with over 90% seeing their debts reduce or stabilise. On 4 June 2026, the Government announced a further £4 million of additional funding through MaPS to meet growing demand, which is expected to support an additional 16,000 businesses over the next 3 years. This investment will help ensure that small businesses and sole traders – including those in rural areas – can access the support they need to get their finances back on track.

MaPS publishes an annual Debt Advice Impact Report which covers the impact of its services including Business Debtline. The 2024/25 Report can be found at Money and Pensions Service-funded debt advice impact report 2024/25 | Money and Pensions Service

Delays in allocating Access to Work applications for self‑employed customers are due to high demand and the additional complexity of these cases, which often require further evidence such as tax and income details.

The Department recognises the impact of these delays, particularly for disabled applicants without employer support. To address this, steps have been taken to recruit additional staff to clear the backlog and improve processing times: Huge recruitment boost to tackle backlog in vital disability work scheme - GOV.UK.

Priority is given to customers starting work within four weeks and to those renewing awards, to minimise disruption to employment.

We recognise the vital contribution that freelancers provide to the cultural ecosystem of this country. That is why we committed in the Creative Industries Sector Plan to appoint a Freelance Champion, who will advocate for the creative sector’s freelancers within government.

The Government is focused on growth and good jobs across the creative industries, as set out in our Creative Industries Sector Plan. Freelancers will benefit from programmes including the £150m Creative Places Growth Fund, with funding devolved directly to 6 MSAs to support regional priorities in their regional creative clusters, and the sub-sector growth packages. Arts Council England also provides funding and support for individual artists and creatives through two programmes: Developing Your Creative Practice, which offers £2,000–£12,000 for career development, mentoring, research and training; and National Lottery Project Grants, which provide £1,000–£100,000 for creative projects and R&D.

The Government recognises the challenges facing the country when it comes to pensions. On average, someone retiring in 2050 is set to have 8% (£800 per year) lower private pension income compared to a retiree in 2025 (in today’s earning terms), while nearly 15 million working-age people are not on track to have an adequate retirement income as measured by Target Replacement Rates.

The Government has already taken action to reform workplace pensions. The Pension Schemes Act received Royal Assent in April and will play a huge role in strengthening the private pensions market, providing better outcomes for pension savers and supporting UK growth.

We have also revived the Pensions Commission to address these very matters of adequacy, fairness and sustainability. The Commission published their interim report on 19 May 2026, setting out the key challenges facing the system and where it will focus its work next. This includes a particular focus on those most at risk of undersaving or poverty in retirement, including individuals on lower incomes, the self-employed, and those unlikely to own their own home in retirement. It will publish a final report and recommendations in early 2027.

Following publication of the Final Report, the Government will set out its response to the recommendations made and the strategy to deliver a strong, fair, and sustainable pensions system.

Costs will differ from business to business and are influenced by factors including size and complexity of the business, degree of digital capability and cost and functionality of chosen software.

HMRC has published assessment of the potential impact of MTD for Income Tax on taxpayers joining from April 2028, and it is available at:

www.gov.uk/government/publications/making-tax-digital-for-income-tax-self-assessment-reducing-the-mandation-threshold-from-30000-to-20000-from-april-2028/reduction-of-the-mandation-threshold-from-30000-to-20000-from-april-2028

Responsibility for agreeing contractual terms and for ensuring payment to self-employed locum pharmacists rests with the retail pharmacy businesses that deliver National Health Service pharmaceutical services.

Where locum pharmacists have trouble recovering unpaid fees, support is available through the Advisory, Conciliation, and Arbitration Service and Citizens Advice, including guidance on pursuing payment through the courts and on seeking unpaid wages or other sums owed by an insolvent business.

The government expects parcel delivery companies to meet their legal obligations and ensure drivers receive their entitled protections. The Government is also committed to strengthening rights and protections to help the self-employed thrive in good quality self-employment.

We are aware of concerns around payment practices in the parcel delivery sector and are monitoring the emerging practice of dynamic pay generally.

Any individual with a complaint or uncertainty about their rights or employment status can seek advice from the Advisory, Conciliation and Arbitration Service.

We intend to consult on the employment status framework in due course.

To ask His Majesty’s Government what steps they are taking to provide paternity leave to the self-employed.

I thank the noble Baroness for her advocacy for the importance of paternity leave and parental rights. We have already delivered real change through the Employment Rights Act. On 6 April, paternity leave and unpaid parental leave became day-one rights. Alongside these changes, we are undertaking this comprehensive review of the system to consider whether further reforms are required. We have engaged with a broad range of stakeholders, alongside evaluating other sources of evidence. We have received almost 1,500 responses to the call for evidence, and it is important that we consider these carefully before deciding what further reforms are required.

My Lords, why do the Government need another review to tell us what is obvious: that excluding nearly one in four fathers from our system of paternity pay is unfair and needs fixing? Becoming a new father can be stressful and expensive, as well as wonderful and joyous. But if the Government are committed to supporting families now with the cost of living, can the Minister commit to closing this loophole in 2026, not in another year’s time?

The noble Lord is right to draw attention to the importance of fathers and mothers, the whole family unit and kinship carers in nurturing families, and the role of families in our communities. The review is wide-ranging. It is considering all existing entitlements and is looking at the implications for economic growth, labour market participation, maternal health and the best start in life. I am sure it will also look at the uptake of existing measures as well as potential extensions to entitlements, on top of what is already in place.