Universal Credit system ‘punitive’ towards creatives

Calls are being made to scrap the government’s Universal Credit (UC) system after research uncovered it is pushing workers in the creative and cultural industries into deep financial hardship.

Research from Equity and the University of Warwick found the scheme’s minimum income floor (MIF), which determines a self-employed person’s entitlement based upon an assumed level of earnings, is leaving creative sector workers unable to pay for essentials including food, utilities or accommodation.

In a survey of self-employed creatives eligible for UC, 41% said they had gone without food or utilities, nearly half said they had been unable to pay their bills, while 5% said they had been forced to leave their homes.

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Four in five said UC had not helped them to work in the industry, a strong contrast to research done during the time of UC’s predecessor, when three quarters said social security support helped them to work.

The findings, which Equity’s General Secretary Paul W Fleming called “appalling”, have led to the union reigniting calls for social security reform.

“Equity cannot stand by whilst artists are treated as second-class citizens by the social security system. For all artists, and all workers, we must fight to win a decent safety net,” Fleming added.

Actor Julie Hesmondhalgh has joined calls for system reform, saying she believes people try to avoid UC completely because of “the bureaucracy and the Kafkaesque nature of applying for it, waiting for it, getting in, and being forced to job seek in areas that aren’t your skill set in any way”.

“The social security system now is so punitive and so difficult to access, and the narrative and the culture is so much about people cheating,” Hesmondhalgh added.

“And it’s actually pounds and pence compared to the people who are creaming off millions off the top, it’s absolute madness.”

A report accompanying the survey recommends MIF is scrapped and calls for a review into how the social security system treats atypical workers.

Workers ‘forced out’

Research lead Dr. Heidi Ashton, Associate Professor at the Centre for Cultural and Media Policy Studies, University of Warwick, said the current social security system is forcing those who are most financially vulnerable out of the sector.

“Data from this research revealed the high levels of training and skill that workers possessed. Respondents spent on average 12.1 hrs a week training and actively pursuing work as an ongoing commitment to the profession.”

Ashton added that without a safety net, “people without other financial means are either leaving the sector entirely or face losing their homes”.

One participant told researchers they now live out of their car, as they are unable to afford accommodation.

“I rely on free car parks (which there are not many), and public bathrooms. Arts venues which offer free studio space are another space I rely on – finding somewhere to work from, keep warm, and charge equipment.”

Another described the process of relying on social security as “devastating”.

“Had to turn to a food bank for eight months as I had no income and no support from Universal Credit,” they said.

Data collected as part of the research found the average earnings in the cultural and creative industries to be £15,270 after expenses, but before tax.

The finding equates to less than half the median pay for UK full time employees of £33,280, of which 94% of respondents said they earn less.