Self-employed losing £300bn

Posted 9th November 2017 in For Businesses For Workers

The UK’s workforce is losing out on £300 billion every year because of a lack of financial protection.

Research from Scottish Widows discovered 93 per cent of self-employed people in the UK do not have any critical illness cover.

According to the figures, self-employed workers being forced to take extended sick leave would lose an average of £67,500 a year.

The poll found 47 per cent believed they do not need critical illness cover or see it as a priority. Worryingly, 62 per cent revealed they have no other income outside of their own business.

“Self-employed workers put immeasurable amounts of time and money into getting their businesses off the ground, but our research reveals that they’re failing to protect their greatest asset – themselves,” said Johnny Timpson, protection specialist at Scottish Widows.

He also raised concerns self-employed workers have a more limited range of working-age benefits.

“Self-employment and self-reliance go hand in hand, so it’s absolutely vital that these workers have a back-up plan in place should the unexpected happen, especially with so many of their families being solely reliant on their income. No-one wants to think about the unexpected happening, but having a financial back-up plan will provide peace of mind and allow people to enjoy the many benefits that self-employment brings.”

According to 2016 ONS figures, there are around 4.7 million people classed as self-employed in the UK.

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