Many self-employed fear they won’t find work as economy opens up

As many as 40% of self-employed workers say that they don’t feel financially prepared for the future, finds a new survey from the IPSE.

The IPSE (the Association of Independent Professionals and the Self-Employed) research also revealed that not only are 37% of self-employed professionals worried about not being able to find work, but over one million have been pushed into debt due to the pandemic.

For example:

• 23% took on credit card debt during the peak of the pandemic (amounting to 1.05 million people).
• 14% went into their overdrafts.
• 27% used up either all or most of their savings.

Derek Cribb, CEO of IPSE, commented, “The pandemic has left the freelance sector deeply financially scarred, driving hundreds of thousands out of its ranks and pushing millions more into debt. So far, the easing of restrictions has had a clear and positive impact, but the freelance sector has been seriously and structurally undermined and it is not enough. The delay to the easing of restrictions is also a major blow.”

Cribb added, “Freelancers are one of the most productive and dynamic sectors of the UK workforce, offering vital flexible expertise to businesses up and down the country. For this reason, they have historically always been vital to economic recovery after downturns. This is an extreme and unusual case, however, where freelancers were disproportionately exposed to the financial damage of the pandemic.

“To get on their feet and play their crucial role in the economic recovery, they will need a shot-in-the-arm stimulus package. This should be particularly targeted at the worst-affected groups, such as limited company directors – who were excluded from support – as well as freelancers in the events and creative industries.”

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