Transcript Aaron Barbour

Journeys to Formalisation
London’s Employment and Skills Convention
CESI presentation
23rd May 2011
www.community-links.org
Community Links
& the informal economy
• East London charity – 35 years
• Supporting 30,000 local people every year
• 10 years + focus on informal work and poverty
– Evidence base: 25 reports +
– Policy development: HMRC Hidden Economy Group
– Campaigns: ‘Need NOT Greed’
www.community-links.org
About cash-in-hand work
Definition
• Economic activity hidden from the state for tax,
benefit or employment law purposes, but legal in all
other respects.
Facts & Figures
• 12.3% / ₤120bn of UK’s GDP
• Over 2 million workers
• Av. 20% in deprived borough’s
www.community-links.org
Why formalise?
• Individual
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grow business
make it viable and profitable
employ people
remove fear of looking over shoulder
• Employment provider
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self employment is another ‘work option’
client already working therefore committed
few barriers (vs. long term unemployed)
better paid ‘differential payment’ groups
job sustainability - 80% still trading after 2 years
• Government
– reduced benefit payments
– increased tax take
– increased legal compliance
www.community-links.org
Key components to formalise
• Individual
– ready to formalise / legitimise
– have tested business products and skills needed to run a
business
– ready to grow business
• Support organisation
– already provide business support (have experience and skills)
– trusted in the local community
– knowledge of local community and services
• Government
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acknowledge informal work
behind the scenes: don’t provide frontline service (not trusted)
ready to try carrot and stick approaches
amnesty: “only look forward” principle
www.community-links.org
Mechanics of formalising
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Skilled advisers
Address wider issues e.g. housing, benefits
Need to gain trust with clients – it takes time
Don’t be explicit about the service – business as usual
Will only formalise if shown benefits of doing so
– make more money, can advertise, employ more staff
• Each client is unique
– needs assessment + plan + small steps
• Apply the “only look forward” principle
www.community-links.org
Contact Details
Aaron Barbour
Head of linksUK
Community Links
105 Barking Road, London E16 4HQ
020 7473 9666 (direct line)
[email protected]
www.community-links.org
www.community-links.org