'Alarming and avoidable' drop in self-employment

Latest Government statistics show a 154,000 drop in the number of self-employed, following on from figures which revealed that the number of self-employed had fallen by a record 238,000 in the three months to August.

With numbers continuing to fall this month, self-employed group, IPSE, has warned the drop is likely because of gaps in self-employed support during coronavirus.

It has called on the Government to prepare a 'fair, flexible and focused' extension of the Self-Employment Income Support Scheme (SEISS) for the second wave.

Derek Cribb from IPSE said: "The labour market statistics this month reveal an alarming and avoidable drop in self-employment.

"In a recession, we would usually expect self-employment to be flourishing as companies seek out flexible expertise. Instead, we are now seeing a drastic and continuing decline in the sector. This is almost certainly because of the glaring gaps in Government support: next to nothing was done for limited company directors and the newly self-employed and now we are seeing the consequences.

"The self-employed are vital for economic recovery, but huge swathes of the sector have been undermined and left behind. As a second wave of coronavirus approaches, Government must do more. We urge the Government to prepare a fair, flexible and focused extension of the Self-Employment Income Support Scheme – for the sake not only of the self-employed themselves, but also the economy."