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Living at Work

Review of a report working towards "a new policy framework for modern home workers"

The rapid increase in working from home seems to have caught policy makers on the hop. It is not just the increase in numbers, it is the changing nature of what people do when they work at home that has left the legislators behind. Traditionally, policies affecting home working have been underpinned by two assumptions: 

  • that home working is usually manual, exploitative and underpaid 

  • that work in general is for the most part too noisy, smelly and traffic generating to be acceptable in residential areas. 

The rise of the new economy and new ways of working means that these prejudices need to be put aside. It is not the case that specific legislation or regulation has been developed over the years to deal directly with working at home. 

Home working is, however, affected by wider legislation. And generally this wider legislation has created disincentives, grey areas, red tape - not to mention red herrings - that effectively put obstacles in the way of home based enterprise and employment. 

Barriers to tackle

This ought to change, in the view of a new report from the Joseph Rowntree Foundation. The Foundation (JRF) has a strong track record in promoting social justice and in particular the improvement of living conditions. Their concept of "lifetime homes" is well known, as is their commitment to social housing and economic initiatives to lift people out of poverty. It is natural, then, that they should turn their attention to the issue of combining work with living space. 

The report Living at Work: a new policy framework for modern home workers examines the areas where new policy needs to be developed to sweep away obstacles to home working: 

  • Taxation 

  • Rateable value 

  • Planning 

  • Social housing 

  • Regeneration 

A key principle underlying many of the recommendations in these areas is that new forms of home working - teleworking - create positive opportunities for people to improve their standard of living. And yet public policies put obstacles in the way.

Sometimes the disincentives are more apparent than real. These come in the forms of grey areas, mainly in the field of taxation, business rates and planning regulations. Rarely invoked powers create amongst teleworkers and would-be teleworkers the fear that they may be penalised for working from home, or even prevented from doing it. But for the most part the authorities do not take action. 

De-regulate - don't regulate!

It is often argued by proponents of teleworking that there should be particular legislation encouraging and protecting home working. This is a dangerous route to follow, and would lead to the creation of a tangle of red tape. The bureaucratic mind loves to regulate by making fine distinctions, creating classes of people and activities, adding copious "if"s, "but"s and "notwithstanding"s. Far better to remove areas of bureaucratic activity than add to it.

What is needed is a simple principle: 

  • where a business use is clearly ancillary to the main use of a dwelling, it should be permitted and not incur liability for non-domestic taxation (e.g. business rates or capital gains tax). 

The effects of such a principle would be in effect de-regulatory, and simple to administer. The report argues that allowing what is widely undertaken on the quiet would be pretty much revenue neutral for the taxman. But importantly, it would remove disincentives to honest people.

Planning 

A somewhat odd situation exists at present with regard to planning law. On the one hand, government departments officially encourage teleworking. But on a practical basis, they discourage it.

Existing planning regulations which prevent home-based businesses are largely rooted in the view that workplaces and homes make bad neighbours. There has been a gradual move towards the concept of "mixed development", but in practice a pretty rigid divide is drawn between residences and workplaces. 

Rules affecting "live/work space" can be highly restrictive. Traditionally the type of case coming before a planning committee or enforcement officer is one where a home-based business use such as physiotherapy or car repair has expanded to the extent that it causes a nuisance to neighbours - due to noise, smells or too many clients visiting. These types of nuisance are likely to be far less common with teleworking. 

At a strategic level too there is an absence of awareness about teleworking. South Cambridgeshire was one of the first local authorities to write into their development plan policies supportive of teleworking. Some others have followed, but few have any real idea about how to put flesh on the bones of generic support. Government planning advice supports "mixed use" development, and encourages home working as a means of reducing the need to travel. 

"Mixed use" in planning terms means locating different uses - e.g. commercial and residential - close to each other, rather than separating them through a zoning policy. The JRF report explores the implications of this in terms of locating work and living in the same location.  While this is developing on an informal basis, there are relatively few examples of "live-work space" being actively planned. 

Housing 

All this of course has great implications for house design and housing policies. With the (apparent) need for over 3 million new houses, mostly in the south of England, to accommodate the increasing number of households in the next decade, there has been a vogue in planning and urban design circles for "densification". An assumption is that as there will be more smaller households less space is required per dwelling. But this is not necessarily the case. 

With the rise of home working and increasing numbers of people looking after elderly relatives there is a growing need for flexible space in homes. People also need adequate space for children to play or study in, adults to work or manage their domestic affairs, or to care for dependents. At different stages of life additional space may be needed for different uses. 

This is particularly relevant in public policy terms when considering social housing. All too frequently when new developments are planned private housing includes plenty of space, while social housing (perhaps included as a result of "planning gain") is developed on the basis of getting as many units as possible in the available space. In this way social exclusion can be built into new developments - excluding people in social housing from being able to work from home. 

In addition to the issues relating to new build, most local councils and housing societies allocate homes to people on a basis that does not include their need to work from home or their potential to do so.

The downside 

There are often perceptions that with home working comes increased risk of social isolation, isolation from the workplace and management, the risk of exploitation and the transfer of corporate costs onto the household. The report takes these into account, raising the issues and suggesting policy direction for employers and for public policy.

Starting point for policy development 

There are many social issues arising from the rise of new forms of work based at home, and the JRF report makes an excellent starting point for exploring them. In the coming months and years we can expect some serious research and many new policy initiatives. 

However, the temptation must be resisted to add to the existing body of regulations. In many cases, it is too much regulation and red tape that is the problem - a clear out is needed. The focus must be on clearing the way for new enterprises and initiatives to prosper.

The report Living at Work, by Tim Dwelly for the Joseph Rowntree Foundation, is available from the Joseph Rowntree Foundation, The Homestead, 40 Water End, York YO3 6LP

ISBN 1 85935 063 1
Price: £10.95