LV= reveals research conducted before coronavirus to show lack of financial resilience of self-employed
According to a survey of more than 1000 UK self-employed, part-time, contract and gig economy workers carried out at the end of 2019 by LV=, one in five self-employed and contract workers said they would be unable to survive a week without work.
It also showed a quarter (26%) had less than £2,000 of savings should they be unable to work through illness or an accident. More than one in 10 (11%) wouldn't last anytime without using long-term savings and 30% would run out of money in less than a month.
Nearly half (48%) said they couldn't turn to friends or family for financial support and one in 10 said they would be forced to turn to credit cards or payday loans
Nearly half worried that illness (45%) or an accident (41%) will leave them unable to work, but many did not have a financial safety-net to smooth out any periods without employment.
Worryingly, but not surprisingly, more than half (55%) had no health insurance or protection in place - such as income protection, critical illness cover or private medical insurance - in case they find themselves unable to work because of accident or illness.
Earlier this month, HMRC opened its Self-Employed Income Support Scheme (SEISS) alongside Bounce Back Loans for small businesses to help those unable to work due to the coronavirus pandemic.
'This is a moment in history like no other'
From Monday 1 June
‘Inconsistencies making it very difficult’
Since pandemic began
One, two or three months