Booming gig economy costs £4bn in lost tax and benefit payouts, says TUC

Study shows low-paid self-employment and zero-hours contracts costing exchequer 75m a week - a quarter of England's weekly social care budget

The rapid rise in insecure work in the UK is costing the government almost 4bn a year in lost tax income and benefit payouts, according to new research into the gig economy by the Trades Union Congress.

The UK's growing legions of low-paid, self-employed workers and those on zero-hours contracts earn significantly less than regular employees and therefore pay less tax and national insurance. Their relatively low earnings also make them more likely to need to rely on in-work benefits such as tax credits and housing benefit, the TUC said.

Related: Zero-hours workers '1,000 worse off a year' than employees

Related: Self-employment in UK at highest level since records began