Weak business confidence and a sluggish economy have left more than 1.5 million self-employed people in a “fragile” financial position in 2026, the UK’s self-employed association has warned.
The warning comes after a nationally representative survey of the self-employed by YouGov and IPSE found that hundreds of thousands of solo business owners are operating with precarious financial buffers, struggling to increase their incomes and unable to save enough for retirement.
Self-employed struggling to prioritise saving
The research found that one in three self-employed people – around 1.58 million – have less than three months’ worth of essential living expenses in reserve, including 11% who have no savings at all.
Beyond short-term savings, the research also reiterated the scale of under-saving for retirement in self-employment, with 44% reporting that they are not currently saving for later life in any way.
Day rate stagnation sees earnings fall behind
IPSE, who commissioned the research, said that self-employed incomes were failing to keep up with the cost of living, and that reports of general wage growth in the economy were not being felt by the self-employed.
The majority of the self-employed (55%) said they froze the fees they charged their clients in 2025, and a similar number plan to do the same in 2026.
Meanwhile, 15% said they had cut their day rates in the past 12 months, despite rising living costs being the biggest financial concern for most self-employed people.
IPSE suggested that the self-employed sector’s financial woes were not being accounted for in major economic decisions and has urged government to do more to stimulate hiring and investment.
Vicks Rodwell, Managing Director at IPSE, comments:
"Many self-employed people have started 2026 in an extremely fragile position, with little or no financial buffer to fall back on if work dries up or costs rise further.
“This doesn’t reflect a failure to budget properly. When business confidence is low, clients pause projects, rates are squeezed, and it becomes almost impossible for freelancers to build up savings – even for those working consistently. Many are working longer and harder than ever just to earn less than they did before the pandemic.
“This level of insecurity has a ripple effect right across the economy. A self-employed workforce that’s constantly firefighting with its finances is less able to invest, plan ahead, or spend in their local communities.
“They urgently need the recent record of tax rises and red tape on hiring freelancers to change, to help stimulate hiring confidence and motivate clients to take projects off the back burner.”
Read the full report
These findings come from our latest research report 'The Resilience Gap' - read the full report to get the latest, nationally-representative snapshot of the self-employed sector's financial resilience.
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