Self-employed finances in 'fragile' state, warns IPSE

05 Mar 2026

Weak business confidence and a sluggish economy have left more than 1.5 million self-employed people in a 'fragile' financial position in 2026, according to the Association of Independent Professionals and the Self-Employed (IPSE).

The warning comes after a survey 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.

According to the research a third of self-employed workers have less than three months' worth of essential living expenses in reserve. Almost half say they are not currently saving for retirement in any way.

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, said: '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.'