According to a new survey by the London School of Economics and Political Science (LSE), the Centre for Economic Performance (CEP) and the University of Liverpool’s Management School, over a quarter of self-employed people are struggling to meet their basic expenses. The reported, entitled “COVID-19 and the Self-Employed: 18 Months into the Crisis”, surveyed 1,500 freelancers between September 15-25 2021.
With incomes and profits still below pre-pandemic levels, 28 per cent of respondents said they were having trouble affording essentials, including rent and bills. For parents with dependent children, this figure rises to 35 per cent, and increases further to 38 per cent among self-employed workers under 30.
There has seemingly been an increase in the amount of work available compared to earlier in the pandemic. 39 per cent of those polled said they had less work than usual in August 2021, this was down from 62 per cent who reported having less work in January 2021. However, in spite of this, reported incomes remain significantly below their pre-COVID levels.
CEP Director and co-author of the report Stephen Machin said: “The harmful effects of the pandemic on the economic fortunes of the self-employed have been highly persistent. While the income levels of the self-employed have improved marginally over the past 18 months, they remain well below pre-COVID-19 levels and a significant proportion continue to report financial difficulties.”
“Take-up of government support measures appears to have dropped, despite a relaxation of eligibility conditions. Uncertainty of eligibility of newer grants is a strong factor for this reduced take-up, suggesting communications about the government schemes could be improved.”
Fellow co-author, CEP Research Assistant Maria Ventura, added: “A significant proportion of the recent increase in self-employment may be temporary jobs, a precarious form of employment that individuals may leave once the economy recovers. It also appears that there is a group of resilient self-employed workers, including those who employ others, who are more aware of whether they are eligible for government support.”
