Report finds creative freelancers hit by loss of work, late pay and AI

Creative UK, a network for the creative industries, has called for reform to the way the sector works with freelancers after its research highlighted the barriers facing the self-employed workforce – from a reduction in work and low pay to challenges posed by the rise of AI technologies.

Its new report, Forging Freelance Futures, makes key policy recommendations, including curriculum revision, sick pay provision, parental leave extension, payment protection and the appointment of a Freelancer Commissioner to help overcome barriers.  

The report is based on a survey of 1,272 freelancers and 221 organisations that work with freelancers, as well as a series of regional focus groups.

About 30% of the creative industry’s workforce operate on a freelance basis. But Creative UK’s research shows that 66% of those surveyed have seen a reduction in work as a result of the Covid pandemic. Two-thirds (64%) of respondents said they had experienced low or unfair pay at some point in their careers.

Those taking part in the research said they had to do unpaid work to gain experience when starting out, and many reported late payments from clients that impacted their ability to meet everyday payments such as rent and bills. 

AI is contributing to the reshaping of the creative industries, and 21% of freelancers reported a decrease in demand for their services as a result of generative AI.

Structural inequalities also pose an ongoing threat to the vitality and diversity of the freelance workforce. Global majority freelancers taking part in the survey said they have experienced “tokenism”, where their inclusion in projects felt performative rather than substantive.

Disabled freelancers reported continuing barriers to entry, such as inaccessible application processes and a lack of workplace adjustments. Freelancers from working-class backgrounds are less likely to secure sustainable careers due to financial precarity, reliance on unpaid work and limited industry connections, the survey found.

 “The Covid pandemic changed so much about all of our working lives – but this is especially true for freelancers,” said Caroline Norbury, the chief executive of Creative UK.

“As this report lays out, many who work in this way have found opportunities to be more precarious than ever. We need to find ways to better support this vital part of the creative workforce – and to create new systems in a post-Covid world.

“This means adapting provision within both the public and private sector to ensure it is more fit for purpose, incentivising the creation of new products and services that support the freelance workforce, and in the process, unlocking the potential of an expert, committed, agile and flexible workforce. It’s vital that we get this right – for creatives, and for the wider economy.”

Five key areas for reform*:

1. Developing talent through targeted revisions to the curriculum and careers advice, along with the provision of accessible, continuous professional development opportunities for freelancers.
2. Work and pay practices including the extension of sick pay and parental leave to freelancers, providing essential parity – in terms of safety nets and support – to the terms available to traditional employees. Addressing the issue of low pay for freelancers and the critical need to improve diversity across the cultural and creative industries is also essential to unlock the potential for sustainable growth across our sub-sectors.
3. Payment protection through measures to safeguard freelancers from late payments and financial instability, including strengthening requirements for prompt payment practices.
4. Planning for the future with tailored financial products and pension schemes that accommodate the unique needs of freelancers, helping them to secure their financial future without undue complexity or burden.
5. Championing freelancers across government and ensuring a unified approach to recognising and supporting the significant contributions of the freelance workforce by appointing a freelancer commissioner within the UK Government.

*Recommendations from the Forging Freelance Futures report