This was actually a drop from £303bn in 2021, according to new research by IPSE (the Association for Independent Professionals and the Self-Employed), outlined in its recent annual ‘Self-Employed Research Report’.

The report reviews both the solo self-employed population, who do not have employees, and freelancers, the most highly skilled professionals operating in the top three standard occupational categories. The latter category is estimated to provide £126bn or 45% of the overall contribution that solo self-employed workers generate.

In the report, IPSE identified the major occupations of the solo self-employed workforce as construction and building trades (360,000), road transport drivers (284,000), artistic, literary and media occupations (274,000) and agricultural and related trades (189,000). 

Also pinpointed in the report are growth and decline in the UK regions of solo self-employed populations over the last year. Northern Ireland saw growth of 13%, London 10%, Scotland 10% and South-West England 9%. Reporting decreases were Wales (-17%), the East of England (-9%), North-East England (-9%), North-West England (-6%), the West Midlands (-5%) and the East Midlands (-4%).

The report said: “The self-employment sector has slowly started to recover over the past year after periods of uncertainty, restrictions and reforms.

“However,” it went on to say, “freelancers have been contending with the continuing impact of the off-payroll working (IR35) reforms, which came into effect in April 2021, whilst also challenged by the cost-of-living crisis that has engulfed the UK throughout much of 2022.”

IPSE said its research had revealed that as a result from the changes, 36% of contractors are now working in situations that are considered ‘inside IR35’. Of those, 80% have seen a drop in their quarterly earnings by an average of 30%, IPSE said.

Gender-wise, ISPE found that the overall solo self-employed population is now 62% male and 38% female, representing a 1% increase in the proportion of men from 2021. However, over the long-term, women have made significant strides in representation in the solo self-employed population, the percentage rising by 57% since 2008. The number of men has increased by 11%.

In reviewing the top three most highly skilled standard occupational classifications, IPSE found that men make up 55% of all freelancers, with women at 45%.

Solo self-employed mothers represent 13% of all solo self-employed people. “Exactly half of working mothers are now working in [the top three highly skilled occupations],” IPSE said.

The IPSE research also found that the overall solo self-employed disabled population has increased year-on-year since 2013, having increased by 42% over this 10-year period. “Interestingly, the age group that has seen the highest increase amongst the disabled solo self-employed is the 60+ age band” with an increase of 28% between 2021 and 2022,” IPSE said. The percentage is equivalent to 47,000 individuals.

Access the full report here.

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