You are here: Home - Credit Cards & Loans - News -

Freelancers regularly fall behind on bills due to late payments

Written by: Emma Lunn
The financial situation of the UK’s army of freelancers has been laid bare on National Freelancer’s Day.

According to ETZ Payments, 2.6 million skilled workers regularly miss bill payments due to not being paid on time.

The software firm calculated that 15 per cent of UK workers have had to turn to payday and other short-term lenders due to inconsistent payments for freelance work. This rises to 17 per cent of ‘middle class’ freelance workers, equating to 3.4 million Brits.

ETZ Payments pointed out that although zero hours contracts and freelance work has traditionally been perceived as an arena for low-skilled workers such as taxi and delivery drivers, self-employment has become a lucrative life-choice of the middle-classes with consultants, project managers, data scientists and specialists often working on a freelance basis.

The study, which polled 2003 UK adults, showed that 4.3 million middle class (ABC 1) workers have made the jump to working freelance from the traditional nine-to-five.

It found that 8 million working Brits – 25 per cent – can’t afford big ticket commitments such as weddings, holidays, and home improvements due to the freelance payment structure. This trend translates to a quarter of middle class workers, representing 4.8 million Brits.

It also found that nearly half of the UK workforce – 47 per cent of British workers – would convert from a traditional role to working flexibly if they knew that they would get paid regularly. This rises to 52 per cent of middle class workers, equating to 8.5 million workers.

Nick Woodward, CEO of ETZ Payments, said: “It is startling to see the sheer number of middle-class British workers who are having to leave freelance work due to the ongoing stress of chasing invoices. It should be a norm that in today’s workplace, with modern technology, that freelance workers should be able to complete a job and be paid for it on either the same or next day. Millions of workers are being held back in life because their employers are not paying them properly or on time. This has to change to help people have a more productive and happier work life balance and to support the British economy.”

The government announced earlier this week that it intends to crack down on bigger businesses which have poor payment practices towards their smaller suppliers and contractors. Plans include holding company boards accountable for payment practices to small businesses within their companies, and fines for late payers.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Unfamiliar banks woo savers with top rates…is your money safe?

If you’ve been keeping an eye on the savings best buy tables, you’ll have noticed some unfamiliar names lu...

What the base rate rise means for you

The Bank of England has raised the base rate by 0.25% to 0.5% – following on from the increase from 0.1% to ...

How to get help with your energy bills

The rise in the energy price cap from April will mean millions of households will pay hundreds of pounds a yea...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week