With research showing that 67% of firms were negatively impacted by the pandemic, the IPSE warns there’s still a ‘debt crisis’ for the self-employed excluded from financial support.
According to the report, due to gaps in support for so many of those working within the sector, 23% of self-employed professionals have taken on credit card debt in order to get by, 14% relied on their overdrafts and 27% admitted to using up all of their savings during the pandemic.
Now, the IPSE is urging the government to start planning for better support for the self-employed should more restrictions come into play as we approach winter.
Andy Chamberlain, Director of Policy at IPSE (the Association of Independent Professionals and the Self-Employed), said, “While the Self-Employment Income Support Scheme (SEISS) has been a vital lifeline for many self-employed people, it cannot be ignored that many others were unable to access it. There were approximately 1.5 million newly self-employed people, limited company directors and others who were excluded. (The total including other worker groups may run up to over 3 million.)
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Email Jaime“These excluded groups have now been driven into a debt crisis and we urge government to look at the situation and consider debt relief measures to get these freelancers back on their feet. SEISS may be ending, but the financial consequences of the pandemic – and of the exclusion of so many freelancers from support – will be felt for years to come.
“We also urge government to plan now for better support if there are renewed restrictions this winter. The exclusion debacle was a disaster for millions of freelancers and others across the country: this must not happen again.”
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