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.

Related Posts

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.

Everything you wanted to know about ISAs…but were afraid to ask

The new tax year is less than a fortnight away and for ISA savers or investors, it’s hugely important. If yo...

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

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.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week