‘I’ve lost 75pc of my income since virus hit’

Freelancers and entrepreneurs face lost earnings and poor protection if they contract coronavirus, report Marianna Hunt and Jessica Beard

Britain’s five million self-employed workers are among the most at risk of losing out financially to coronavirus, experts have warned. One freelancer, who works in events, told Telegraph Money his monthly income has already fallen by 75pc since the start of the outbreak, due to falling demand from clients. Self-employed people who have to self-isolate or take time off work are even more at risk, as they are not entitled to statutory sick pay.

MPs and think tanks said the Government’s stopgap for the selfemployed, which was announced in the Budget, did not go far enough.

FALLING INCOME

Freelancers working in the events industry have been some of the first to feel the squeeze on their wallets, with more large gatherings cancelled by the day. The Government had not yet banned public events at the time of going to press, but has not ruled this out as an option if the situation escalates.

Ollie Appleton, 26, from London, said all his shifts setting up events in the coming weeks had been cancelled.

He is concerned he could face months without work. “My industry might be dead for six months. I have nothing booked this week or next at all. It would usually be getting busy around now,” he said.

Mr Appleton could lose 75pc of his usual monthly earnings if this goes on, he said. He is already £500 down this week, which has pushed him to look for delivery jobs to make ends meet.

Carl Reader, a 39-year-old business adviser and public speaker, has also found that several of his bookings have been cancelled or postponed due to coronavirus. Mr Reader said the event organisers have covered the cost in some cases, but not all.

“Every day I am having to revisit my diary to check if the next event is still happening. It could be really damaging – the big opportunity cost for me is not meeting people,” he said.

SICK PAY RIGHTS

Karl Handscomb, of the Resolution Foundation, a think tank, said selfemployed people who contract the virus faced even greater risk to their income.

In the Budget, the Government outlined provisions for self-employed people forced to self-isolate, allowing them to claim support through the benefits system. It said it will make it quicker and easier for people to apply. Other measures included a £3,000 cash injection for small businesses and the possibility of delaying tax payments.

However Justin Madders, a Labour MP and shadow employment rights minister, said the measures did not go far enough. He said payments for Employment and Support Allowance (ESA) and Universal Credit were lower than statutory sick pay.

“This could leave self-employed people having to rely on unsecured loans or feeling they have no choice but

A self-employed worker on employment support would have a quarter of their typical income

to work even when ill. That is a serious public health risk,” said Mr Madders.

While statutory sick pay is £94.25 a week, the weekly payment for ESA is £73.10 or £57.90 for people under the age of 25. Universal Credit is paid at £317.82 per month or £251.77 for the under-25s.

The average self-employed worker claiming ESA would have to survive on only a quarter of their typical income, the Resolution Foundation calculated.

Another issue, Mr Madders said, is that those who are not already receiving Universal Credit will have to wait five weeks for their first payment – although they will be able to receive the money in advance as a loan. The Labour Party has called on the Government to extend sick pay rights to all workers.

Self-employed people could also struggle to meet their living costs. Many are renters, as getting a mortgage can be difficult without a regular income. While homeowners have been offered mortgage holidays if they cannot repay because of coronavirus, renters have received no such promises.