THE Treasury is losing £4 billion a year through an explosion of low-paid and insecure jobs, new research revealed yesterday.
The rise in zero-hours contracts and poorly paid self-employment has led to a tax shortfall and higher in-work benefit payments, the TUC said.
The £4bn drop in revenue includes lost income tax and national insurance payments, it added.
TUC general secretary Frances O’Grady said: “The huge rise in insecure work isn’t just bad for workers, it’s punching a massive hole in the public finances too.
“Zero-hours contracts and low-paid self-employment are costing the economy billions every year in lost tax revenues.
“That’s money that could be spent on stopping the crisis in our schools and hospitals and making sure every elderly person gets decent care.
“Getting more people into unions is key. Workers in unionised workplaces are twice as likely to be on better-paid secure contracts.”