Latest ONS data has revealed that worryingly, since the start of the pandemic, a staggering 660,000 people have left the self-employed sector.
According to recent research from the Association of Independent Professionals and the Self-Employed (IPSE), those who are still contracting have seen a devastating impact financially – particularly those who were excluded from government help.
Derek Cribb, CEO of IPSE, commented, “In the year since the first lockdown, the self-employed have suffered a shattering financial loss – especially the 1.5 million who were excluded from government support for much of this time. A large proportion of this group – particularly those working through limited companies – are also still excluded, with devastating financial consequences.
“The pandemic has had a disproportionately damaging impact on the self-employed sector in the last year, with one in eight being driven out – into employment or out of work altogether – and many more struggling with severe financial loss. More than one in five have had to take on credit card debt to get by, while one in seven have gone into their overdrafts and more than a quarter have burned through all their savings. And we have heard many much sadder stories from individual excluded freelancers. These are drastic problems that freelancers will be struggling with for years to come.”