With the Self-Employment Income Support Scheme (SEISS) and furlough ending, the Association of Independent Professionals and the Self-Employed (IPSE) has warned that many freelancers are still suffering from both the impact of the pandemic and a lack of government support.
According to research undertaken by IPSE, 67 per cent of freelancer businesses were negatively impacted by COVID-19, with 47 per cent seeing their turnover drop by 40 per cent or more. Gaps in government support also meant that 23 per cent of freelancers took on credit card debt, 14 per cent went into their overdrafts and 27 per cent used up their entire savings.
These latter statistics have caused the IPSE to warn that many freelancers in the UK are facing a debt crisis. Furthermore, it has urged the government to begin preparing now for the possibility of future COVID-19 restrictions and new support measures for freelancers, saying that the exclusion many faced previously “must not happen again”.
IPSE Director of Policy Andy Chamberlain said: “While the Self-Employment Income Support Scheme (SEISS) has been a vital lifeline for many self-employed people, it cannot be ignored that many others were unable to access it.”
“There were approximately 1.5 million newly self-employed people, limited company directors and others who were excluded. (The total including other worker groups may run up to over 3 million.)”
“These excluded groups have now been driven into a debt crisis and we urge government to look at the situation and consider debt relief measures to get these freelancers back on their feet. SEISS may be ending, but the financial consequences of the pandemic – and of the exclusion of so many freelancers from support – will be felt for years to come.”
