Header logo
Log in

As BBLS closes, IPSE praises scheme but warns of “rising tide” of self-employed debt

As the BBLS (Bounce Back Loan Scheme) closes, IPSE has praised it for the help it provided for the self-employed – but also warned of a “rising tide” of debt in the sector.

About us simpler
IPSE Press Office
01 Apr 2021
1 minutes
Share

As the BBLS (Bounce Back Loan Scheme) closes, IPSE has praised it for the help it provided for the self-employed – but also warned of a “rising tide” of debt in the sector.

IPSE research with Starling Bank suggests one in ten freelancers (10%) took out a Bounce Back Loan, while one in four (23%) took on credit card debt and one in seven (14%) had to go into their overdrafts to get by during the pandemic.

Andy Chamberlain, Director of Policy at IPSE (the Association of Independent Professionals and the Self-Employed), said: “The BBLS has been a vital lifeline for many freelancers – and its generous repayment time is welcome. At the same time, however, government must pay close attention to a rising tide of debt in the self-employed sector.

“For many freelancers who could not access the Self-Employment Income Support Scheme (SEISS) – such as the newly self-employed and limited company directors – BBLS were the only way to keep themselves afloat. And, as our research has shown, many others – particularly those who struggled with the tightening eligibility criteria for the schemes – have taken on major debt from traditional forms of borrowing such as credit cards and overdrafts.

“As the government prepares its Recovery Loan Scheme, we urge it closely monitor the level of debt in the sector – and not only ensure leniency from lenders, but also be ready to step in to reduce the strain on freelancers in the coming months and years.”

Latest self-employed news and opinions

What to expect in 2025 2
What to watch out for in 2025
+1 more

Policy Director Andy Chamberlain looks ahead at what the self-employed will be watching for in Westminster in 2025.

08 Jan 2025
Inheritance Tax changes listing
Inheritance Tax changes: What self-employed professionals need to know

The Autumn Budget introduced significant changes to Inheritance Tax (IHT) that could impact your estate plans — particularly for self-employed professionals who r...

20 Dec 2024
Author default profile picture
Chase de Vere
How athletes offer a marketing solution for the self employed 2
How athletes offer a marketing solution for the self-employed

Small businesses often struggle with expensive and ineffective marketing options. Could athlete sponsorship offer the solution?

19 Dec 2024
Author default profile picture
Jessica Hayden
IPSE-LOGO-HEADER

Join our newsletter

Registered in England and Wales, no 03770926. Lynton House, 7-12 Tavistock Square, London WC1H 9LT