It’s fair to say that 2025 was a bruising year for many in self-employment.

We heard the same story from our lots of members. Long periods out of work; contracts falling through; day rates being held back while costs continue to rise. Some returned to permanent roles, not by choice, but because the demand just wasn’t there. And it’s clear this isn’t limited to a handful of sectors – it’s being felt across the board. Yet despite all this, there’s good reason to be optimistic about 2026.

We know that many freelancers accepted lower rates than they would like in 2025 just to keep their portfolio up to date.

New IPSE research (coming in January) will show that around three quarters of the self-employed have not been able to increase their day rate at all in the past 12 months, leaving them unable to keep pace with inflation.

More concerning still, over one in ten saw their day rate fall.

When rates don’t keep up with inflation, contractors feel the squeeze straight away: it hits their confidence, their disposable income, makes it harder to invest in skills or tools, and forces them to put any plans for growth – or even continuing as self-employed – on hold.

Political decisions undeniably played a significant role in shaping this environment. The increase in Employer National Insurance landed at a moment when the market was already fragile. Faced with rising costs and uncertainty, many businesses chose to delay or cancel projects.

That decision has reduced opportunities across the economy, affecting employees and the self-employed alike.

At the same time, many businesses are hesitating to hire freelancers or contractors, deterred by complex employment status rules and the added impact of IR35 reforms.

The recent Budget, unfortunately, did little to boost confidence in the jobs market. It offered no measures to reverse declining business confidence or restore hiring intentions, and many company directors felt targeted by yet another raid on dividends. 

The continued absence of a clear growth agenda also only added to the uncertainty, at a time when businesses remain desperate for reasons to move forward with projects.

Despite how difficult the past year has been, our forthcoming research shows something vitally important – most self-employed people want to stay self-employed in for the years ahead.

They value autonomy, flexibility and control over their working lives. They value doing work they enjoy, building businesses on their own terms and having the freedom to make decisions for themselves.

That belief matters. It means that despite the challenges freelancers faced in 2025, their appetite for independent work is as strong as ever. And when confidence returns to the wider market and businesses begin moving forward with projects again, the self-employed will be ready to meet the demand.

Looking ahead to 2026, there are also reasons for optimism. Emerging sectors, technology-driven opportunities, and growing demand for specialised skills could create new income streams and demand for the flexible workforce. We may also get some much-needed clarity from government on employment status rules, which has the potential to ease the burdens on firms wanting to work with freelancers and contractors.

After a year like this, change can’t come soon enough. Let’s hope 2026 finally delivers some bright news for our vital self-employed sector.

Thank you for everything you’ve done to help us champion the self-employed. Every member strengthens our ability to influence government and push for fairer policies. The more of us there are, the louder our voice – and the greater the impact we can make together.

As we head into 2026, we need that strength more than ever. If you’re not yet a member, now is the time to join. If you are, renewing ensures we can keep fighting for clarity, confidence and growth in the self-employed sector.