Bectu’s Philippa Childs welcomes UK government’s Small Business Plan

Philippa Childs, head of creative industries union Bectu in the UK, has welcomed the government’s Small Business Plan and its intention to put a stop to late payments.

Philippa Childs

Under the plan for small and medium-sized businesses, released yesterday, the UK government will enforce legislation “to end the scourge of late payments,” which it said costs the UK economy £11bn (US$14.5bn) per year and closes down 38 businesses every day.

Welcoming the move, Childs said: “Creative freelancers, many of whom work in already precarious industries, are particularly vulnerable to and impacted by late payments. And many feel that they can’t complain for fear of missing out on future work.”

According to the exec, a recent survey conducted by Bectu found 47% of all creative industry freelancers often or sometimes wait more than 30 days for payment, with more than a third having waited more than six weeks. As a result, nearly four in 10 have had their cash flow impacted or gone into debt.

“This is an absolutely critical issue for freelancers who already face difficulties due to the precarious nature and financial insecurity of their work,” Childs said. “I urge the small business commissioner to work closely with the promised freelance champion to do all they can to ensure that any new measures are aligned with the critical need for freelancers to be paid on time.”