Self-care: Providing income security for the self-employed

There are 4.4 million self-employed people in the UK. This is 13 per cent of people in work, and they make a substantial contribution to the economy.

While some are relatively well off, average net income for a full-time self-employed worker is 12 per cent lower than for a full-time employee. And while many actively choose this way of working, many are trapped – two-in-five self-employed workers would work a salaried job if they could. Many self-employed people face a major income shock when they fall sick, have children or retire.

The self-employed must be included in this welcome drive to improve working conditions and income security. This briefing paper sets out three income protection options for the government to consider, dealing with sick pay, parental leave, and pensions in turn.