• People are moving into freelancing for overwhelmingly positive reasons: more flexibility (88%), the freedom to choose where they work (83%), when they work (84%) and for improved work-life balance (73%). 
• When people go freelance, however, they are faced by many challenges and 53 per cent say they worry a lot.
•  Younger freelancers and women are worse affected than the rest of the sector with 72 per cent of 16-29-yearolds and 60 per cent of women saying they worry a lot.
• Freelancers’ biggest worries are irregularity of income (60%), not being financially prepared for retirement (56%) and late payment by clients (46%). 

More people than ever are going freelance and their motivations are overwhelmingly positive. When people become freelancers, however, they are faced by challenges that cause severe worry among many. These are most serious for two groups: the younger self-employed and women. This report finds the government should do more to support freelancers in the face of these challenges. 

Over four in five freelancers say that freedom to choose where and when they work were key factors in them becoming self-employed. This figure rose for women with nine out of ten saying that one reason they started working for themselves was to get more flexibility. Three quarters (73%) of all freelancers also went into self-employment to have a better work-life balance. 

By contrast, just one in five (19%) said that losing their job was a factor in them becoming self-employed. This rose to 25 per cent among over-50s. Overall, however, people were mostly attracted to freelancing for positive reasons. 

Three out of four (77%) freelancers said they were happy working for themselves: just five per cent said they were unhappy. Although they are generally happy, however, freelancers face many challenges. 53 per cent say they worry a lot and two groups in particular seem to be more stressed than the rest: women and younger freelancers. 

Among 16-29 year-olds, 72 per cent said they worry a lot. Nearly two-thirds of them (60%) also find freelancing more challenging than expected compared to 43 per cent of the wider sector. Nearly half (44%) also said freelancing made it more difficult to find time for social and leisure activities – compared to 29 per cent of the rest of the sector. 

Younger freelancers are more concerned about all the main challenges facing the sector. Almost three quarters (72%) of 16-29 year-olds said they worried about irregularity of income compared to 60 per cent of the wider sector. Half (50%) are worried about not being paid on time, compared to 46 per cent of the wider sector. Almost two out of three (62%) are also concerned about not having access to employment rights, compared to an average of 46 per cent across all age groups. 

Two other key worries for younger freelancers are isolation and finding work. Nearly two thirds (58%) of 16-29 year-olds said they worried about not being able to find work – much higher than the 45 per cent average. Four in ten (39%) also said they struggled with feelings of isolation, compared to a third of the sector overall. 

Female freelancers have many similar concerns. Two-thirds (65%) worry about irregularity of income, compared to 53 per cent of male freelancers. Half (52%) also worried about access to statutory benefits, compared to 39 per cent of men. This may be because female freelancers are not eligible for maternity pay – only the lower maternity allowance. 

We have four key recommendations, explained in full at the end of the report, that can help to alleviate the challenges facing the growing freelance workforce: 

Recommendations: 

1. End the culture of late payment. Late payment is one of freelancers’ biggest concerns and exacerbates many of their other financial challenges. IPSE recommends giving more powers to the Small Business Commissioner to tackle it – including fining the worst offenders. 
2. Undertake a full review of the tax system. 34 per cent of all freelancers are worried about taxes and dealing with HMRC. IPSE recommends a full review of the tax system to make it work effectively for the selfemployed and employees alike. 
3. Support the self-employed to save for later life. Over half of the freelance sector are worried about not being financially prepared for later life. Government and the pensions industry should develop and promote more flexible pension schemes suitable for freelancers. 
4. Provide support and advice to help people navigate the challenges of self-employment. Government and organisations like IPSE should work together to produce accessible guidance and training to tackle all the challenges facing freelancers.