Life is tough when you are raising children alone, juggling debt and relying on a benefits system that does not always work. So why start a business? This is my story of how I turned desperation into direction, and why starting a business as a single parent can still be a road off benefits in the UK today.

My story by Carol Frazer

I was not raised to believe in myself. School was something to leave, not a route to university or further education. After my first job through a government training scheme, I built a successful career with an international media company in London. I worked in customer service for the Sales and Marketing Department, side by side with directors and editors, and later moved into other high-profile roles. I met famous, influential people and watched the high-flyers at close quarters. Yet those jobs left me hollow. I could not identify with people who earned extreme amounts for work that seemed to add little value.

I travelled the world with my partner and saw how much need existed outside the London bubble. Then I fell pregnant and decided to leave my job to raise our child. I was 25 and thought the timing was right, but it was hard. We lived with my parents for a while, my relationship deteriorated and depression set in. A year later we rented a place and tried to become a proper family.

Working with people and communities

I found a job as an attendance officer at a local high school, a role I had never heard of, but one that became mine to shape. It was my first real immersion in communities and the pressures facing families. I loved it and thrived, expanding into pupil support and keyworker roles.

When I became pregnant again, everything became harder. My relationship and my depression worsened, and after four years I had to leave. I was suddenly homeless with two children and thousands of pounds of debt. All we had was my car and the clothes in the boot. I had never used the benefits system and no one showed me how. I was completely lost.

Motivation and confidence

Eventually we found somewhere to live. After some false starts, the job centre referred me to a local employability course for single parents. It focused on motivation and confidence, facing fears, rebuilding self-worth. I loved it, not only the content but meeting other people in the same boat, some worse off than me. It changed my outlook on life and, most importantly, on myself. I updated my appearance, started thinking positively and was nominated by a local enterprise agency for “working against the odds”. I went to an awards ceremony, won £100 and even appeared in the local paper. It felt strange, but it gave me the strength to look for work I actually wanted to do, not work I simply had to do.

A local training provider then invited me onto a motivational course and offered me a volunteering role as an employment adviser. I knew nothing about benefits or job-search support, but I threw myself into it and loved every day. Helping people, whatever their background, is what drives me. I started an NVQ Level 4 in Advice and Guidance while I worked.

Getting off benefits in 2026

The future was, and still is, a road off benefits. I have had repeated problems with the system. Benefit errors and delays meant my children spent Christmas and New Year with their dad because I had no money to feed them. Housing-benefit mistakes brought us close to eviction.

Today, the landscape has shifted to Universal Credit. According to gov.uk guidance, self-employed claimants must report earnings monthly and may be affected by the Minimum Income Floor, which assumes a certain level of income even when work is slow. The standard five-week wait for a first payment still applies, though advance payments are available. These rules can make self-employment feel precarious rather than liberating, which is why planning matters.

Starting my business

Changes at work made me realise it was time to take control. My daughter came home with a certificate for winning a Dragons’ Den competition at school, and half an hour later, while I was washing up, I had an epiphany. I needed to start my own business. It did not feel like a surprise; I think I had been planning it subconsciously. Ideas exploded in my head. The business would focus on ordinary people who need practical help with life, benefits, housing, employment, advocacy, because I met them every day through my job.

I wanted to work from home, but I did not want clients walking into my family space. I remembered the offices where the single-parent course had been held, popped in and found the rent was surprisingly affordable. That became my base.

I looked for self-employment support. The New Enterprise Allowance I considered no longer exists; it closed in 2022. In its place, options such as Start Up Loans for female founders, local Growth Hubs, and free HMRC webinars on registering as self-employed and Self Assessment are the main routes. I opened a business current account, registered my domain name and email, and sorted headed paper and business cards. I asked around for second-hand office furniture and decorated the office as professionally as I could. Everything was funded out of my own pocket.

What the numbers say now

More than a decade on, the UK context has changed but the core challenge has not. According to ONS data published in 2024, there are around 1.8 million lone-parent families in the UK. Gingerbread estimates that, as of 2024, around three-quarters of single parents are in work, yet many still face in-work poverty and a benefits system that can penalise rather than support ambition. Self-employment accounted for roughly 4.3 million workers in 2024, according to ONS labour market data, yet the safety net for the self-employed remains thin. You can find more context on women in business: key UK facts.

Starting a business as a single parent: practical lessons

This was never going to be quick. I was working part-time, still volunteering, picking the children up at 3:15pm and surviving on almost no money. Plenty of people thought I was crazy, and I knew it could go wrong. But my life experiences had led me to this point. I had never felt more confident, strong or career-driven.

If you are thinking of starting a business as a single parent, my advice is practical:

• Get advice before you claim or change your working hours. Citizens Advice, Gingerbread and your Jobcentre Plus work coach can explain how earned income affects Universal Credit.
• Register with HMRC as soon as you start trading and keep records from day one. The trading allowance may cover the first £1,000 of income per tax year, but good records protect you.
• Explore grants and low-cost loans early. Start Up Loans, local authority grants and some charities offer support specifically for parents and women.
• Check your childcare position. The 30-hour childcare offer and Tax-Free Childcare can cut costs, but eligibility rules for the self-employed are strict.
• Build a network. Isolation is one of the biggest risks when you work from home or around school hours.

Watch this space. The story is still being written.

Carol Frazer runs coaching and advocacy services supporting people navigating benefits, employment and life changes.