Burnham urged to crack down on gig economy firms to protect 4m workers

The gig economy has always thrived on a legal fiction: the “flexible” independent contractor who is actually scheduled, monitored, and paid like an employee. This latest report from the Fabian Society and the Joseph Rowntree Foundation sharpens the debate by quantifying the human cost—4 million people denied basic rights that most workers take for granted. Andy Burnham, as a prominent voice in regional governance and a former minister, is being asked to lead the charge through prosecutions. But is prosecution the right tool, or does the law itself need rewriting? At the heart of the issue is the distinction between genuine self-employment and bogus self-employment. Many drivers, couriers, and delivery riders are free to choose when they work, but their pay rates, assignment allocation, and performance metrics are controlled by the platform. Courts have repeatedly found that some of these workers are, in fact, employees or workers under existing definitions. Yet enforcement has been piecemeal, with companies often settling individual claims while maintaining the same practices for their wider workforce. The campaigners argue that without a clear deterrent—such as targeted prosecutions—the industry will continue to externalize costs onto the state and the workers themselves. From a balanced perspective, there are legitimate concerns about over-regulation. Gig work offers flexibility that many people genuinely value—students, caregivers, and semi-retirees often appreciate the ability to log in and out at will. A heavy-handed crackdown could reduce the number of available gigs, push platforms to restrict hours, or even force some smaller operators out of business. The challenge for policymakers is to craft rules that protect the vulnerable without suffocating the innovation that has made same-day delivery and on-demand services so ubiquitous. What makes this story significant is the political timing. With a new prime minister “fleshing out his agenda,” the pressure is on to deliver meaningful labor reform. Burnham, who has styled himself as a champion of the working class, now faces a test: will he push for legislative change, or back the enforcement route? The call for prosecution is a direct challenge to the status quo, but it also raises questions about capacity—do local authorities have the resources to pursue these cases? As the debate unfolds, the key will be finding a middle path that upholds worker dignity without demonizing the platforms that provide income for millions. For a deeper dive, see the original report at the Guardian: https://www.theguardian.com/business/2026/aug/16/andy-burnham-gig-economy-companies-employment-rights.