Financial uncertainty was one of the biggest drivers of poorer mental health for freelancers in 2025.
Almost half saw their income fall last year, over 50% experienced significant periods with no income, and nearly 70% said it negatively impacted their mental health, despite irregular income being a systemic feature of self-employment, the research by support group Leapers found.
With late payment of invoices a key driver of financial challenges for freelancers and small business owners, Leapers has worked with the Small Business Commissioner to release a new guide to finding mental health support and practical help when late payments are affecting personal wellbeing.
Emma Jones, Small Business Commissioner and an SMEWeb columnist, said:
“Running a business can be tough at times and it is important that freelancers know about, and feel they can reach out to, the help and support available. Having founded a small business support platform and network before becoming Small Business Commissioner, I have seen the profound and positive impact when freelancers join a community of like-minded peers.
“At the Office of the Small Business Commissioner we are committed to playing our part, with a focus on tackling and challenging late payment, so those going into self-employment can realise the full benefits of working for yourself, being rewarding and fulfilling work.”
Government research shows that late payments costs the UK economy around £11 billion per year.
Over 1.5 million businesses, or 28% of all firms, are affected by late payments, and 14,000 businesses close annually as a result of the issue, equivalent to 38 businesses every day.
Businesses are owed an estimated £26 billion in late payments at any given time, an average £17,000.
