A survey conducted by a bank suggests that over half of the self-employed sector of the economy believes its financial position has worsened during the pandemic - with a quarter believing they may have to stop being self-employed completely.
The research is by Aldermore Bank and it says:
- 51 per cent of those self employed in the UK think their financial situation has become worse over the past year;
- 34 per cent applying for government support;
- 25 per cent of self employed home owners requesting a mortgage holiday period during the past 12 months to get by;
- 59 per cent saying their monthly earnings have decreased since the pandemic began;
- 41 per cent do not anticipate they will return to their pre-Covid earnings in the near future;
- 23 per cent of self employed workers in the UK are considering stopping being self employed altogether.
On the plus side the survey suggests that 46 per cent say they have adapted their business to help them stay afloat - although more than one in eight say they have had to completely change their business model to continue operating.
However, many of the self employed in the UK appear to remain vulnerable to future shocks. One third say they do not have enough savings to last three months if they find themselves out of work.
“The self employed sector make up a significant proportion of the workforce and is a breeding ground for innovation and advancement in many industries, so they will play an important part in the UK’s economic recovery post-Covid” suggests Jon Cooper, head of mortgage distribution at Aldermore.