The gender pay gap within traditional employment has long been a concern in the UK and elsewhere across the world, but a new study by Remitly reveals that this problem is also hitting sole traders and freelancers.
While freelancing is often associated with greater flexibility, independence and control over earnings, many women working for themselves are still facing financial inequality
These findings come at a time when the UK’s freelance workforce is continuing to grow rapidly, with more people turning to self-employment amid rising living costs, workplace changes, and demand for flexible working opportunities.
The UK’s freelance economy continues to grow
In the last few years, the UK’s freelance economy has boomed significantly. Whether it’s down to workplace redundancies, turning a side hustle into a full-time business or just wanting more freedom than a full-time job, there has been a notable shift towards self-employment across the country.
In fact, according to the latest Government figures, there are 3.2 million sole proprietorships in the UK, with the number increasing by 5% between 2024 and 2025.
IPSE also reports that the common reasons people opt to go freelance include more flexibility (88%), the freedom to choose where they work (83%), when they work (84%), and improved work-life balance.
On the flip side, there has also been an increase in the number of businesses hiring freelancers over full-time employees. This is primarily due to full-time employment costs rising by 9.6% in a single year. As a result, 25% of businesses say they’re increasing their use of contractors and freelancers and plan to continue doing so.
What is the freelance pay gap in the UK?
Despite the evident boom in the UK’s freelance economy, the gender pay gap has remained a persistent issue, with many female freelancers earning less than their male counterparts.
According to a study by digital finance services company Remitly, the gender pay gap for UK freelancers is 15.4% – a significant increase compared to the UK’s full-time employee gap at 4.5% (as of March 2026).
On a global scale, it was reported that the average female freelancer charges $31.33USD per hour, which is 19.0% less than the average male ($38.66) across several industries. Finance and accounting were also found to have the largest gender pay gap, with women charging 26.1% less.
Concerns about money also seem to be more prevalent among female sole traders, as the report also found that 49% of self-employed women worry about their finances, compared to 37% of men.
This could come from the fact that three-quarters of freelancers have not been able to increase their day rates in the last 12 months, primarily due to client budget pressure, increased competition, IR35 legacy effects, and anxiety around artificial intelligence (AI).
Vicks Rodwell, Managing Director at ISPE, quoted in a March 2026 report, says that it also comes from a lack of confidence when it comes to increasing rates.
“Women know it’s not as simple as ‘just charging more’; where a man is seen as confident for negotiating their rates up, a woman can be seen as difficult or pushy,” she commented.
“It’s important that we continue to challenge these biases and remove the barriers self-employed women face when advocating for themselves in business.”
How female freelancers can improve their earning potential
Female freelancers can take several steps to strengthen their earning potential and help close the gender pay gap.
This includes regularly reviewing industry benchmarks and comparing daily rates with others in the same sector to ensure work isn’t being undervalued.
Networking can also play an important role in finding better-paid opportunities. Whether it’s through events, LinkedIn or online communities, building strong connections can lead to repeat clients, referrals, and access to larger projects.
It’s also worth diversifying income streams through retainers (charging an upfront or recurring fee to guarantee availability or future services) or longer-term contracts rather than solely relying on one-off jobs.
While flexibility and independence remain major upsides for self-employment, there’s a clear need for greater transparency, confidence around pricing, and better support to help close the gap.
