The latest ONS Labour Force Survey releases show self-employment among women aged 50 and over growing faster than almost any other group. Women in this age bracket are now one of the fastest-growing segments of the UK self-employment market, with many moving from paid employment into freelance careers or their own businesses. For policymakers, business support bodies and women themselves, the shift raises practical questions about flexibility, finance and later-life working.
What the ONS headline figures show
The ONS Labour Force Survey tracks employment status by age and sex across the UK. Its recent releases show a sustained increase in self-employment among women aged 50 and above. This increase has outpaced growth among self-employed men over 50 and among younger female workers. Women aged 50 to 64 now represent a substantial share of all self-employed women in the UK.
This is not simply a post-pandemic rebound. Self-employment among women over 50 has continued to climb since 2020. Part-time self-employment accounts for much of the growth. Many women in this cohort combine freelance work with caring responsibilities, phased retirement or portfolio careers. You can view the underlying labour market release on the ONS website.
Why more women over 50 are turning to self-employment
The ONS figures reflect both push and pull factors. Age discrimination in hiring remains a significant barrier. Women in this age group often report difficulty securing permanent roles after redundancy or a career break. Many find that employers are reluctant to hire older workers, despite extensive experience.
Caring responsibilities also play a major role. Women over 50 are more likely than men to care for ageing parents, partners or grandchildren. Self-employment offers a way to earn an income while managing these responsibilities. It also allows women to scale their workload up or down as family needs change.
Workplace culture also influences the decision. Many women over 50 report feeling invisible in corporate environments, passed over for training or promotion. They choose self-employment to escape inflexible policies and ageist assumptions. Running their own business allows them to define success on their own terms. They can also build something they can eventually sell or pass on.
Financial necessity is another driver. The gender pension gap means women retire with smaller pensions than men. Research consistently shows that women typically accumulate less pension wealth than men by later life. For many, self-employment provides a way to keep earning and save more for retirement. It also allows them to delay drawing on a reduced pension. Some women also choose self-employment to monetise decades of expertise or turn a passion into a business.
ONS data by sector for self-employed women over fifty
ONS data by sector reveals clear patterns among self-employed women over 50. Professional, scientific and technical services employ the largest share of self-employed women over 50. This includes management consultants, accountants, marketing specialists and business coaches. Many women in this group use skills built over long corporate careers to advise smaller businesses or private clients.
Health and social work also feature prominently. Women over 50 increasingly work as self-employed carers, counsellors, therapists and wellbeing practitioners. Education and training is another strong area. Older women are setting up tutoring businesses, delivering corporate training and offering online courses. Creative industries, including writing, design and crafts, continue to attract women who want flexible, meaningful work.
Pensions, tax and the practical hurdles for older founders
ONS figures also reveal financial vulnerability among self-employed women over 50. Despite the opportunities, self-employment after 50 brings serious challenges. The self-employed do not benefit from employer pension contributions. Women who move from employment to self-employment often see their pension savings rate fall sharply. This can widen the existing gender pension gap rather than close it.
Tax planning also becomes more complex. Self-employed workers must complete annual Self Assessment returns, pay Income Tax and National Insurance contributions, and manage cash flow carefully. Self Assessment deadlines fall on 31 January for online returns and payments on account. Missing these deadlines triggers penalties and interest. Newly self-employed women must register with HMRC promptly and keep accurate records of income and expenses. Many find it helpful to use cloud accounting software or hire a bookkeeper from the outset. HMRC provides guidance on working for yourself.
Access to finance remains a persistent problem. Female founders, including older women, often report bias when applying for business loans or investment. Women over 50 may also face additional scepticism from lenders about long-term business viability. Digital skills can be another hurdle. Some women need support with accounting software, customer relationship tools and social media marketing.
What policymakers and support bodies should do next
The ONS trends among self-employed women over 50 demand a policy response. The government should extend pension auto-enrolment to the self-employed and add incentives to save. The government could match a percentage of self-employed National Insurance contributions into a pension pot. This would help older women build retirement security while they continue to work.
The government should also consider simplified tax wrappers for the self-employed, similar to the Help to Save scheme. Small, matched savings contributions could encourage pension building among lower-earning freelancers. These changes would particularly help women who work part-time or in low-margin sectors such as care or creative services.
Business support programmes also need to recognise this demographic. Many schemes target young entrepreneurs or tech startups. Women over 50 often need flexible training, mentoring from peers and finance products designed for slower-growth, lifestyle businesses. Support bodies such as the FSB and IPSE have called for more inclusive provision.
Lenders and investors should review their assessment criteria. Lenders should not treat age as a proxy for risk. Funders should evaluate business plans, trading history and market opportunity on merit. Local councils and business networks can also run practical digital skills workshops for older women returning to work or starting a business.
The bottom line from the ONS trends
The ONS release confirms a long-term shift in how older women work. Self-employment is no longer just a path for young freelancers or male tradespeople. It has become a serious working option for women over 50 who want flexibility, financial security and control over their careers. The numbers are rising because traditional employment often fails to meet their needs.
For women considering this route, preparation matters. Review your finances, understand your tax obligations, and research your market before you leave paid employment. Practical steps include checking entitlement to State Pension, reviewing existing workplace pensions, and setting aside money for tax bills. Women should also investigate whether they qualify for Universal Credit or other in-work support during the early months of self-employment. Build a network of peers who can offer advice and referrals. Consider starting your business alongside existing work to test demand before making a full transition. If you are ready to take the next step, read our guide on setting up a business today.
The trend matters for the wider economy too. Older women bring experience, resilience and customer insight to their businesses. Supporting them is not just a social good; it is an economic opportunity. If the UK wants to unlock growth and extend working lives, self-employed women over 50 deserve targeted, practical support.
For more context on female entrepreneurship and the UK business landscape, see our Women in Business: Key UK Facts page.
