The gender pay gap – the difference in median hourly earnings of women compared to men – stands at 12.8%, according to the Office for National Statistics. The problem is widely publicised, but these figures don’t account for self-employed earnings.
This raises the question: what is the self-employed gender pay gap, and how does it compare?
The self-employed gender pay gap
This means that the average self-employed woman working full time could be £12,266 worse off per year compared to a self-employed man.
And a percentage, the gap between male and female earnings is 13%, which is almost identical to the headline rate for employees.
When you’re self-employed, you have a greater degree of flexibility to set your own prices. So why is there a pay gap in self-employment?
To get more insight into the psychology of pricing, we spoke to Jane Curtis, a freelancer and money mindset coach who specialises in helping women to increase their prices:
Are self-employed women underselling themselves?
"Yes, and the data is stark. IPSE's own research shows a 13% gender pay gap in self-employment – which has come down significantly since earlier research, but it's still unacceptable.
What makes it more complex and more frustrating is that self-employed women are setting their own prices. So, on the surface it looks like a choice. But it isn't happening in a vacuum."
Why are women less likely to raise their rates?
"Women's relationship with money is shaped long before they ever thought about what work they'd be doing. We're socialised to be helpful, to put others' needs first, to feel uncomfortable taking up financial space.
My of the clients I work with are in the charity sector; there, you’ve got women who’ve spent decades being praised for selflessness, absorbing tight budgets personally and equating their value with how much they give away. Environments like this can add another layer to the problem if they go freelance.
Women carry a completely different emotional relationship with money - more fear, more anxiety, more guilt.
Men, broadly speaking, are more confident about financial decisions - even with the exact same level of knowledge. Women often feel less permission to earn well and that shows up directly in what they charge and how they negotiate.
So this isn't just a case of upping our prices to close the gap. There's a lot of conditioning and internal factors at play too."
Do freelance women face more opposition when raising their prices?
"The outdated narrative is that women simply don't ask. However, there's a well-documented "backlash effect" in negotiation research.
When women advocate assertively for themselves, they're more likely to be perceived as difficult or pushy. Men displaying exactly the same behaviour are seen as confident. That creates a genuine double bind: ask and risk being penalised, or don't ask and stay underpaid.
What I see most in my work with freelance women isn't clients pushing back on their prices. It's women pushing back on themselves before the client even gets the chance. Editing the number down or discounting without being asked. They’re absorbing the discomfort of the pricing conversation by simply making themselves cheaper.
So the opposition is real. External bias that penalises women for negotiating and internal conditioning that stops them trying. And until we address both, the gap won't close."
What strategies can women use to address underselling and hiring bias?
1. Separate your feelings from your pricing
"Your rate isn't a reflection of who you are as a person, it's a reflection of the outcome you deliver. That sounds simple, but for a lot of women it's genuinely the biggest shift they make. Once the price stops feeling personal, everything gets easier.
2. Don’t isolate yourself – find your community
One of the biggest drivers of undercharging is isolation. When you're freelance, you're often pricing in the dark – no salary bands and no idea what someone doing similar work is charging.
Finding communities and networks where money is talked about without taboo can be transformative. Transparency is one of the most powerful tools we have.
3. Practise holding your price before you need to
Rehearse saying the number out loud. Get comfortable with the silence that follows. The discomfort you feel when you quote a higher rate isn't a sign you've got it wrong – it's a sign you're growing out of an old pattern, and that's a good thing.
4. Consider moving from selling your time to selling transformations
Day rates can keep you trapped in a model where clients are buying hours rather than expertise. When you can articulate the value of the outcome – not just the input – it changes the whole dynamic.
5. Get proper support
The pay gap didn't appear because women lack information. It appeared because the conditioning runs deep and unpicking it on your own is really hard."
Get involved in your IPSE community
When you’re busy working on your self-employed business, beating the isolation that can come with running a business can feel difficult. One of IPSE’s missions is to help our members overcome that challenge with our Community Hub.
If you’re an IPSE member, the Community Hub is your dedicated space to connect with other self-employed professionals, access valuable resources, and take part in real-time conversations about the issues that matter most.
Built on Discord, the Hub brings our membership together in one place to share knowledge, learn new skills, and support each other throughout the self-employment journey.
Whether you want to network, ask questions, or stay updated with IPSE news and events, this is where it all happens.
Want more support with your self-employed business?
Join us for an empowering and practical session exploring how women, particularly those who are self-employed, can take greater control of their financial future ...
A coach or business mentor will help you devise strategies, offer advice, and point you in the direction of resources that will help you navigate your journey of ...
Becoming self-employed and working from home shouldn’t have to mean that you feel lonely or isolated - here's some tips for making connections remotely.
