A quarter of self-employed workers are considering returning to staff roles because their financial situation is so difficult, research by Aldermore has found. 

A poll by the lender revealed that 51% of people who are self-employed in the UK say their financial situation has become worse over the past year.

Three in five (59%) say their monthly earnings have decreased since the pandemic began and 41% do not expect to get back to their pre-Covid earnings anytime soon.

Many remain vulnerable to future shocks with one third of self-employed workers not having enough savings to last three months if work dried up.

Over a third of self-employed people have applied for government support during the pandemic and a quarter of self-employed home owners have requested a mortgage payment holiday. 

Nearly half (46%) of the self employed respondents say they have adapted their business to help them stay afloat.

Aldermore head of mortgage distribution Jon Cooper says: “The self-employed sector makes up a significant proportion of the workforce and is a breeding ground for innovation and advancement in many industries, so it will play an important part in the UK’s economic recovery post-Covid. 

“The self-employed are often fulfilling a life’s dream in creating their business, and some of the biggest companies in the world like Amazon and Facebook started as small start-ups, so it is crucial this entrepreneurial spirit is supported by government and lenders through these tough times and for whatever future life plans they have.

“For the self-employed who may feel pessimistic about their future home buying prospects after this difficult period, there are options available to help. 

“It’s important to seek advice from a broker who can provide whole of market experience and to explore specialist lenders’ options, as they function to dig into the detail of an applicant that may have complicated income streams lifting traditional barriers to getting on the housing ladder.”