12 November 2019

Financial vulnerability of self-employed an ‘area of concern’ as figures show strong growth in numbers

4 min read

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Becky O'Connor

Personal Finance Specialist

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ONS employment figures published this morning showed that the rise in the number of self-employed people in the last year was greater than the rise in the number of employed people (an annual rise of 195,000 to September, compared with a rise of 110,000 employed people). The proportion of all workers who are self-employed is now 15.1 per cent.

Commenting on the figures, Becky O’Connor, personal finance specialist at Royal London, said:

“The growth in self-employment looks like a win for freedom and flexibility.

“In reality, it’s almost 5 million people who may be earning less, not paying enough into their pension and experiencing cash flow issues that put them at risk of debt.

“They also miss out on employee benefits such as holiday and sick pay, life insurance and income protection.

“Many people may feel they have no choice but to become self-employed if they cannot find work that is suited to them. For some, it could be a choice between being self-employed and being unemployed.

“Often, this is mothers going self-employed to work around children.

“The financial vulnerability of this growing group of workers is an area of concern.”

About Royal London:

Royal London is the largest mutual life insurance, pensions and investment company in the UK, with assets under management of £139 billion, 8.6 million policies in force and 4,348 employees. Figures quoted are as at 30 June 2020.

For further information please contact:

Becky O’Connor, Personal Finance Specialist