South: UK benefits from freelancers’ £109b contribution

According to new research published by IPSE, the association of independent professionals, the contribution to the UK economy by its 1.91 million self-employed freelancers (a rise of 36% since 2008) soared to £109 billion in 2015.

The research, launched at IPSE’s recent flagship policy conference, suggests that £109b is a conservative estimate. The economic contribution by this group is so high because it largely consists of highly-skilled, specialist individuals.

Notably, 1.65 million people choose to freelance as their main job, with 255,000 doing so as a second job. In total, freelancers now account for 6% of the UK workforce.  

Chris Bryce, CEO of  IPSE, commented: “Every day freelancers make an enormous contribution to businesses across the UK and the economy as a whole. Research shows the vast majority of freelancers love what they do, so it’s no surprise that increasing numbers of people are turning to this way of working.

“Large firms, and increasingly, SMEs are tapping into this growing pool of independent workers who are available on demand, with the specialist skills to hit the ground running. There are few signs of the growth in freelancing slowing down any time soon.”

Anna Soubry, the small business minister, said: “Freelancers know their trades inside out and make a massive contribution to our economy, so it is absolutely right that the government does all it can to support them.

“The Enterprise Bill will shortly become law and I look forward to appointing the Small Business Commissioner as another strong voice for the self-employed.”

Professor John Kitching, the Kingston University London author of the report, said: “Independent professionals are operating in all sectors of the UK economy. They are men and women, young and old, and are located throughout the UK. It is clear that freelancer numbers are resilient to changing economic circumstances.”

The research confirmed that more women are turning to freelancing than ever before. 287,000 of the new arrivals are also mothers, an increase of 70% since 2008. Other newcomers driving the growth include mature workers, with those aged 60+ rising by almost two thirds since 2008, while freelancers aged between 16 and 29 increased by 51% in the same period.

Freelancers have a widespread presence across all occupations, but they are particularly well represented in artistic, literary and media roles, this sector representing 17% of all freelancers. Managers and proprietors in other services number 12%, and teaching/education professionals 7%.