Prime Minister Andy Burnham is under pressure to reform gig economy worker protections, with calls to prosecute companies using 'bogus' self-employment practices.
Prime Minister Andy Burnham was urged to overhaul protections for gig economy workers after a joint report from the Fabian Society and the Joseph Rowntree Foundation set out alleged widespread denial of statutory rights to workers, and as government analysis put the cost of reform at between £350m and £2.9bn.
Last update: 19 August 2026.
The call for action came in the context of ongoing economic stress from extreme weather and geopolitical tensions that have reshaped arguments about worker protections and resilience. Advocates argued that clearer employment status rules and a stronger role for the Fair Work Agency launched in April would reduce litigation burdens on workers and prevent employers from undercutting law-abiding businesses.
Who is involved and what was asked
The joint campaign involved the Fabian Society and the Joseph Rowntree Foundation alongside anti-poverty charities and think tanks pressing Prime Minister Andy Burnham and Labour ministers to accelerate reforms. The groups sought statutory changes to end what they described as a legal grey area that left as many as 4 million people without full employee protections.
They specifically urged the government to use the Fair Work Agency‘s civil proceedings powers to pursue companies engaged in what the report called “widespread bogus self-employment” and to shift the burden of proof from the worker to the employer on employment status disputes.
Context: why the reforms were proposed now
Advocates framed their demands against a backdrop of recent economic analysis showing both the short-term gains and the costs tied to reform. Official government analysis published alongside early proposals estimated the measures would cost businesses between £350m and £2.9bn. Proponents argued the long-term economic benefits included higher incomes for workers and reduced litigation costs.
At the same time, external pressures have sharpened focus on labour market stability. Repeated heatwaves and a major geopolitical crisis affecting trade routes have changed the calculation for resilience and worker protection, with modelling warning of weaker GDP growth if disruptions continue. Those conditions were used by campaigners to stress that precarious employment magnifies vulnerability to economic shocks.
Details of the report and government response
The joint report said many gig workers, including delivery drivers, personal trainers and hairdressers, were being denied statutory rights such as parental leave, redundancy pay and protection against unfair dismissal. It recommended moving toward a single worker status for all but the genuinely self-employed, reversing a plan shelved before the 2026 general election and not included in the subsequent Employment Rights Act.
The organisations called for clearer criteria to determine whether someone is an employee, a worker or self-employed and for the Fair Work Agency to pursue civil action where patterns of misclassification emerged. The report argued that shifting the burden of proof would help people avoid lengthy legal battles to secure rights such as the minimum wage and holiday pay.
A government spokesperson said, “Our plan to make work pay will boost secure employment, improve job security, and deliver stronger, higher living standards. The Fair Work Agency is already helping workers get the rights they are entitled to. We’ve committed to consult on employment status and will consider how the Fair Work Agency can use its civil proceedings power alongside that.”
Economic backdrop and implications for policy timing
Economic data showed uneven performance across sectors: services growth, aided by hot weather and major sporting events, contrasted with hits to construction and education from extreme heat. Analysis by other think tanks estimated heatwaves had cost the economy billions in lost output, and Treasury modelling warned that sustained disruption to key shipping routes could reduce UK GDP growth substantially next year.
Campaigners said those pressures increased the case for reform, arguing protected employment rights would strengthen household resilience and reduce dependency on emergency support during crises. The policy debate now revolves around the timing and scope of statutory consultation on employment status and the operational use of the Fair Work Agency‘s powers.
350 · 2.9 · April · Prime Minister · Andy Burnham · Fabian Society · Joseph Rowntree · Foundation · Fair Work · Agency · Labour · Our
