UK households with female freelancers should be earning up to 43% more finds study

It’s a common misconception that the gender pay gap disappears when you set your own rates. Sadly, that’s not the case. Even in the freelance world, women often earn less than men for the same work. This isn’t about individual choices; it’s a systemic issue we need to address.

The freelance pay gap: It’s real and it matters

This may come off as a generalism, but many people will probably agree it has a grain of truth to it: Women have long put up with more injustices and power imbalances at home and in the working world than their male counterparts. For example, they will put up with a very demanding and disrespectful client because their family depends on that income. Yet, that same woman will also put up with being paid less than she is worth. When you think about that, it doesn’t make sense since she is doing her family’s household finances a disservice. Yet, if a male freelancer were also working for the same client, he would more than likely be paid more. That could be because the company systematically perceives him as more valuable because he is a male freelancer, or he just came right out and demanded a higher rate, especially if he has dependents.

According to research highlighted by Allwork.Space, the gender pay gap persists even when freelancers set their own rates. Studies indicate that women often charge significantly less than men, with disparities ranging from 26% to as high as 48%, depending on the industry and region. On average, male freelancers charge around $60 more for comparable services. To put this in perspective, a Career.io study found that female freelancers charge 14.9% less per hour than their male counterparts. This translates to nearly $50 less for an 8-hour project.

In the UK, the Allwork Space report notes a similar situation. Self-employed men earn, on average, 43% more than women in the same sector. For example, male electricians charge significantly more per hour than their female counterparts, resulting in a substantial annual income difference.

What this means for your household

Let’s get real about what this means for your household. Imagine the difference that extra income could make. It’s not just about a bigger number in your bank account; it’s about:

• Financial security: Paying bills with less stress, building a solid emergency fund, and contributing more to your pension.
• Family well-being: Providing better opportunities for your children, enjoying quality time together, and reducing financial strain that can impact relationships.
• Personal growth: Investing in your own development, taking courses, and having the freedom to pursue your passions.
• Thriving, not just surviving: Moving beyond simply making ends meet to truly thriving and enjoying a comfortable lifestyle.

Now, consider the alternative. Continuing to undervalue your work means:

• Strained finances: Constantly worrying about money, cutting back on essentials, and limiting your family’s opportunities.
• Increased stress: Feeling overwhelmed, anxious, and unable to fully enjoy your life.
• Missed opportunities: Not being able to invest in your future, pursue your goals, or provide the best for your loved ones.

It’s a stark choice, isn’t it?

Alarming gaps in people’s finances

One in ten people in the UK have no savings, and another 21% have less than £1,000, according to Sarah Coles, head of personal finance, Hargreaves Lansdown. Now, imagine if you your household could bring in more money just by increasing your rates?

This example £1000 may seem like a useful chunk of cash, but it doesn’t go far if your car breaks down, the boiler stops functioning, or you lose work for a while.

“For one in four people, things have deteriorated even further, and their resilience is at rock bottom,” says Coles.

She says when your finances are stretched, it’s incredibly difficult to build an emergency fund, but when you’re hit by the unexpected, you’ll be grateful for every penny you’ve managed to put aside.

That’s why any boost in earnings can go directly towards tax contributions and an emergency fund.

“It’s a good idea to set up a direct debit to put whatever you can afford aside on payday,” suggests Coles.

“Even if this is a vanishingly small sum of cash, you can make a note to revisit it every few months to see whether you can afford to pay in any more. It’s particularly worth doing this after a pay rises, or during periods when you are working more hours. Over time, you’ll be surprised how even small chunks of cash can build, which will help protect you from nasty surprises,” she says.

Break the cycle: reclaim your value

The good news is that you have the power to change this. It starts with changing how you think about your value. Here are some mental affirmations to help you break the habit of underselling yourself:

• “My skills and experience are valuable, and I deserve to be paid fairly.”
• “I am confident in my abilities, and I will not apologise for charging what I’m worth.”
• “I am contributing to my household’s financial well-being, and my income matters.”
• “I am a successful freelancer, and I am building a thriving business.”
• “I am worthy of financial abundance.”
• “My pricing reflects the value I bring.”
• “I negotiate with confidence and clarity.”
• “I attract clients who respect my rates.”
• “I am in control of my financial future.”
• “Every increase in my rates brings me closer to my goals.”

Don’t let the gender pay gap hold your household back. You have the power to increase your income, improve your household’s financial situation, and create a better future for yourself and your family. Start by believing in your value, setting your rates accordingly, and negotiating with confidence. Your family’s financial well-being depends on it.