Women’s self-employment in the UK has grown faster than male self-employment over the past decade, but the headline numbers hide a more complicated story. For every woman who builds a thriving business on her own terms, another may be working freelance, on a platform or through an umbrella company because she cannot find secure employee work. The question Prowess keeps returning to is whether this shift represents genuine entrepreneurial progress, or whether it is quietly eroding the pay, pensions and protections that employment used to provide.

The scale of women’s self-employment in the UK

According to ONS labour market data from early 2025, there were around 4.7 million self-employed people in the UK. Women account for roughly 35% of the self-employed workforce and have driven much of the net growth since the financial crisis. While men are still more likely to work for themselves, the female self-employed population has grown faster and recovered more quickly from the pandemic downturn.

Yet the expansion of full-time employee roles for women has been uneven. A significant share of new work for women has been in part-time roles, zero-hours contracts, agency work and freelance or platform-based self-employment. These arrangements can offer flexibility, but they can also mean unpredictable hours, fewer employment rights and lower lifetime earnings. For context on the broader picture, see our Women in Business: Key UK Facts page.

Underemployment and the public sector

Underemployment remains a particular concern. According to ONS data from 2024, women continue to make up the majority of underemployed workers, and the number of women working part-time because they cannot find full-time hours remains well above pre-2008 levels. For some, self-employment is not a positive choice but a way to fill the gaps left by a lack of suitable employee jobs, particularly in the public sector.

Public sector cuts and outsourcing since 2010 have disproportionately affected women, who make up the majority of workers in local government, education, health and social care. As these jobs have been lost, downgraded or moved into the private and voluntary sectors, some women have moved into self-employment as a fallback, often delivering similar services with fewer rights and less predictable pay.

Bogus self-employment and low pay

The TUC and other trade unions have long warned that some self-employment is “bogus”: workers are classified as self-employed to cut employers’ National Insurance bills and avoid providing pensions, paid holiday, sick pay and maternity rights. The expansion of the gig economy, agency work and umbrella-company arrangements has kept this issue high on the policy agenda, with cases in cleaning, care, courier work and tutoring.

Low pay is another persistent problem. ONS data from 2024 shows that median earnings for self-employed workers remain well below those of employees. Many self-employed women earn less than the government’s National Living Wage rate of £12.21 per hour introduced in April 2025, as announced in the October 2024 Budget, once unpaid hours, business expenses and gaps between contracts are taken into account. Unlike employees, the self-employed do not receive statutory sick pay, employer pension contributions or paid annual leave, making it harder to build financial resilience during the cost-of-living crisis. If you are pregnant or planning a family, our guide to Maternity Pay Self Employed: A Complete UK Guide explains what support is available.

Pension age, care and flexibility

Rising state pension age has also extended women’s working lives. According to DWP, the state pension age for women rose from 60 in 2010 to 66 in 2020, and it is increasing to 67 between 2026 and 2028. This keeps more older women in the labour market, with some turning to self-employment for flexibility or because they face age discrimination in recruitment.

Women still shoulder the greater share of unpaid care and domestic work. For some, self-employment offers the flexibility to manage caring responsibilities, but that flexibility often comes at the cost of earnings, career progression and pension savings. Without affordable childcare and adult social care, many women have little choice but to trade security for flexibility.

What the data tells us

• Women now account for around 35% of the UK’s self-employed workforce and have driven much of the net growth in self-employment since 2008, according to ONS data from early 2025.
• Women make up the majority of underemployed workers, with many working part-time because they cannot find full-time hours.
• ONS data from 2024 shows median earnings for self-employed workers remain well below those of employees.
• The self-employed do not receive statutory sick pay, holiday pay or employer pension contributions.
• The state pension age is rising to 67 between 2026 and 2028, keeping more older women in work.
• The Employment Rights Bill, introduced in October 2024, is taking effect in stages through 2025 and 2026 and aims to restrict exploitative zero-hours contracts and strengthen day-one rights.

What needs to change in 2026

Employment rates alone do not tell the whole story. While the female employment rate is close to record highs, the quality of work matters. Policy should focus on creating more secure, well-paid employee jobs, especially in the public and care sectors, and on ensuring that women who choose self-employment can do so on fair terms.

The Employment Rights Bill promises to restrict exploitative zero-hours contracts, strengthen day-one employment rights and review worker status. These reforms could help women who are currently misclassified as self-employed. However, the Bill does not remove the need for women in genuine self-employment to plan for tax, National Insurance, pensions and periods without work. Our Employment Rights Act Employer Timeline: Key Dates to Know tracks the key deadlines.

Action steps

• Check your employment status using HMRC’s Check Employment Status for Tax (CEST) tool if you suspect you should be classed as a worker or employee.
• Review your tax and National Insurance position before the 2026/27 tax year begins, including whether you need to register for Self Assessment.
• Build an emergency fund to cover gaps in income, since the self-employed do not receive statutory sick pay.
• Explore pension options for the self-employed, such as a personal pension or self-invested personal pension (SIPP).
• Claim every allowance and childcare support you are entitled to, including the 30 hours free childcare offer if eligible.

Conclusion

Women’s self-employment in the UK can offer real opportunities to build businesses on your own terms, but only when it is a genuine choice supported by fair pay, portable pensions and parental benefits. For too many women, self-employment is still a fallback from insecure employee markets, public sector cuts and unpaid caring responsibilities. As the Employment Rights Bill takes effect and the state pension age rises, 2026 is a critical year to ensure that self-employment becomes a path to prosperity, not a trap.

For the latest official labour market statistics, see the ONS employment and employee types release.