5 October 2015 14:00
Higher pay boosting UK contractor numbers
Contractors are earning considerably more than employees, no matter where they are based, according to new analysis.
Research by Contractor Financials has found that contractors working outside London can expect to earn on average £109,000 per year, just 6% less than their London-based counterparts who earn on average £117,000. This is considerably more than the average salary of £27,119 for all UK employees (Office for National Statistics).
It shows that there's a far smaller pay gap between contractors working in different parts of the UK compared to permanent workers.
The research also reveals that those turning to contracting have become younger since the credit crunch, with over half of all contractors aged between 30 and 40. Today, a 26 year-old contractor is likely to earn £85,341 and can expect to see this increase by nearly 31% to £111,895 by the time they turn 30 according to the research.
Sat Singh, CEO of Contractor Financials, said:
"The North South divide is often a topic of hot discussion but our data makes pleasant reading for those contractors working in the North - they are certainly not lagging behind when it comes to their income. And of course, what this means is that they can expect a better quality of life with more disposable income."
Singh said: "Today there are some 1.75 million contractors and freelancers working in the UK and this trend is set to continue as workers acknowledge the benefits of working for themselves and are choosing to take the plunge from permanent employment and become freelance."
However, the Government needs to do more to support the growing number of contractors in the UK, said Singh.
"This group of workers are still not getting the recognition and help needed from Government when it comes to those benefits enjoyed by permanent employees. Pensions, mortgages and insurance are some of the areas which Government still needs to address if they are committed to supporting this flexible group of workers who are adding real value to UK plc rather than penalising them."