One major industry body is calling for more to be done to protect workers such as contractors in the face of rising costs and inflation.

A recent report from the National Institute of Economic and Social Research has indicated that contractors are facing higher prices and inflation rates that are expected to hit 3% by the end of the year.

The significant overheads that contractors have will unfortunately mean that they are likely to feel the squeeze more than other workers. Factors such as having to supply their own work equipment and potentially frequent travel means that rising inflation will not be welcomed by contractors.

This combination of factors has led to The Association of Independent Professionals and the Self Employed (IPSE) calling for the Bank of England to protect contractor and freelance workers, which is an increasingly vital part of the UK’s workforce demographic.

The IPSE is asking for clear and detailed guidance to be provided to support contractors financially and protect them moving forward.

Jordan Marshall, the association’s policy development manager, said: “We can’t ignore these spiralling inflation rates, which disproportionately affect freelancers and the self-employed. With pay remaining stagnant and inflation hiking up equipment and input costs, the self-employed are really feeling the squeeze now. And our Freelancer Confidence Index has shown they recognise this as a serious and growing concern.”

Marshall added: “The Bank of England must do its best to limit the damage and support the self-employed with clear forward guidance about interest rates, thus allowing them to effectively plan their financial futures.”