New research from the Association of Independent Professionals and the Self-Employed has revealed the scale of the Covid-19 pandemic’s impact on freelancer earnings. The research found that, during the pandemic, over two-fifths of self-employed workers lost more than 40 per cent of their turnover.
Two out of three respondents to the study said that their turnover had been negatively impacted by the pandemic, with close to one in 10 saying that they had lost more than 90 per cent of their turnover.
The study also highlighted the impact of gaps in government self-employed support, with 52 per cent of freelancers saying they didn’t feel supported by the government. Meanwhile, more than 60 per cent of limited company directors said they felt government support was lacking after they were excluded from the SEISS scheme.
The study also broke down the impact of the pandemic on different groups of freelancers. Half of freelancers aged 35 or under saw a drop in turnover, rising to two out of three among those aged over 35. While 36 per cent of female freelancers saw income drop, compared to two in five male freelancers.
IPSE Director of Policy Andy Chamberlain said: “This research shows the true, long-term financial impact of the pandemic on the self-employed sector, which contributed over £300 billion a year to the economy before the pandemic.
“The damage of the pandemic was refracted through the government support on offer – or rather, the lack of support for a significant proportion of the sector. This is reflected in the many freelancers who now simply do not feel the government supports them or their way of working: particularly limited company directors.”
Chamberlain encouraged the government to “repair your relationship” with the self-employed workforce and suggested it “build a stimulus package to support and kickstart the worst-hit parts of the sector”.
