Self-employed numbers continue to fall

Government statistics show that the number of self-employed in the UK dropped by 174,000 between April-June and July-September 2020, leaving the sector at 4.53 million, down from 5.1 million at the end of 2019.

Self-employment group, IPSE warned that this drop shows that the 'glaring gaps in support' are leading to a 'long-term, avoidable decline' in the sector. Derek Cribb from IPSE said: "The continuing drop in the number of self-employed in the UK shows that the glaring gaps in support are leading to long-term, avoidable decline in the sector. This is deeply concerning not only for the self-employed themselves, but also for the UK's prospects in the coming recession.

"After the 2008 financial crisis, it was rising self-employed numbers that kept unemployment comparatively low – as uncertain employers looked for more flexible expertise instead of permanent employees. Now, this does not appear to be happening and the self-employed sector is in precipitous decline. Some self-employed are finding their way into full-time roles, but many others are joining the record flow into unemployment.

"Government must work quickly to stem this flow by urgently getting support to the left-behind self-employed groups. Extending support would be a cost now, yes, but it would be a temporary cost during the pandemic, to hold back an even worse unemployment problem later."