§ 32. Mr. Milneasked the Secretary of State for Social Services if he will institute an inquiry into the extent and effect of changes being made in the contracts of employed persons seeking to transfer themselves into a self-employed category.
§ The Minister of State, Department of Health and Social Security (Mr. David Ennals)A regular check is made on the numbers of insured persons contributing as employed, self-employed and non-employed. There has been a increase in the number of self-employed in recent years, but this is very small in relation to the total number of persons in employment. I do not think that a general inquiry is called for.
§ Mr. MilneIs my hon. Friend aware that the growing number needs to be looked into? There is a considerable increase in the service and distributive trades, with people transferring to the self-employed category in order to avoid taxation, and this can have a detrimental effect on payments made to persons concerned.
§ Mr. EnnalsAs I said in the original Answer, the actual increase is very small; but there has been an increase, particularly in the construction industry. The increase in this industry is one of the matters upon which the Phelps Brown Committee has been reporting, and the Government are now considering the Report and the action they will take.