Policy analysts and trade unions have demanded interventions to strengthen employment rights, guarantee stable earnings, and scale up social protections for platform workers. A spokesperson for the App-Based Workers Union argued: "The government must end the exploitation disguised as 'flexibility'. All platform workers should be classified as 'workers' rather than self-employed independent contractors, guaranteeing them the National Living Wage, sick pay, and holiday entitlement from day one."
The Association of Ethical Employers noted that offering robust employment contracts boosts worker reliability and service quality: "Not only is there an ethical imperative to protect those on the lowest rungs, there is also a compelling business case; reducing income insecurity cuts worker turnover and mental health strains, which directly improves operational efficiency and firm performance."
To offset low and highly volatile weekly earnings, some economists suggest using targeted state top-ups or negative income taxes. However, accessing state welfare systems is intensely difficult for gig workers due to fluctuating weekly incomes. The bureaucracy of estimating monthly earnings often leads to delays in payouts or sudden clawbacks, leaving households with temporary but severe income deficits.
With official safety nets failing, gig workers are increasingly resorting to high-interest payday loans and community credit unions. A recent survey by the Fairwork Foundation indicated that 45% of app-based couriers regularly relied on family loans or short-term credit to cover basic vehicle maintenance and household utilities.
Extract G states that "Policy analysts and trade unions have demanded interventions to strengthen employment rights, guarantee stable earnings, and scale up social protections for platform workers."
Using the extracts and your knowledge of economics, evaluate policies that could be used to reduce in-work poverty among gig economy workers in the UK.
