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A freelance journalist is leading a new campaign to make the National Insurance system fairer for self-employed people.

Anne Wollenberg, a self-employed journalist, editor and copywriter based in London, had gathered 40 signatures for her petition to the government, at the time of writing.

"I've launched this petition because the National Insurance system fails freelancers," she told Journalism.co.uk.

As a freelancer an individual must opt out of contributory (non-means-tested) benefit. This means, Wollenberg argued, that "a millionaire who's made redundant automatically gets six months of benefit, even if they're married to a billionaire".

"If I signed on next week, I wouldn't. I will be means-tested and living with my partner and that means I'd get nothing."

Individuals cannot pay an additional top-up, she added: "The only way round it is to form a limited company or take out insurance, which may be difficult to get, or very expensive, depending on your health."

Wollenberg's petition had particular significance for journalists she said: "Firstly, some freelancers have found it very difficult to get work during the credit crunch and they may get a shock if they try to obtain benefits. I've been asking freelancers what they think they are entitled to and many have got it wrong.

Secondly, she said, most shift workers, such as casual subs, have to go on PAYE (pay as you earn) , in which they must pay class 1 National Insurance on anything above £110 a week.

"You can't opt out, be exempted or claim it back. But if you don't pay it for two years' straight, it counts for nothing. I don't think that's fair. So I think this needs looking at," Wollenberg said.

Thirdly, she said, many freelance due to circumstances, not choice. They may not realise, she added that Class 1 National Insurance paid will not count if they later go to claim job seekers allowance (JSA).

"Becoming self-employed effectively means they have forfeited it. Again, I think this needs looking at."

The petition calls for:

  • Freelance NI to count towards contributory JSA (job seekers allowance) or Class 3 top-ups to be eligible
  •  Better explanation of current rules to people registering as self-employed
  • Those paying Class 1 NI for 2 years to retain eligibility for contributory JSA if they then go freelance
  • A higher threshold for freelancers before paying Class 1 or a Class 1 exemption system

The petition, which closes in April 2010, can be found at this link.

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Written by
Judith Townend

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