Umbrella working rises in popularity

Research by the Freelancer and Contractor Services Association shows that umbrella working is becoming increasingly popular, particularly among high-end professionals.

The study, published in July, compares umbrella working in 2015 with 2017 and shows that 73% umbrella workers now earn £15 per hour or more, and assignments last twice as long as they did two years ago.

• The average assignment rate has risen significantly over the last two years with 73% of umbrella workers earning £15 per hour or More, compared to 53% earning the same rate in 2015
• The average length of an assignment has also doubled in the last two years, with umbrella employees working an average of 29 weeks per assignment compared to 14 weeks in 2015.
• The average length of employment has increased by over 50% since February 2015
• 7% of the UK’s umbrella employees are in the construction sector but there has been an increase in umbrella working within health and social care which now has 17% of all umbrella employees.

Umbrella working has a number of advantages for contractors including employment benefits and continuous employment status which is helpful when securing loans such as mortgages. Find out more about Umbrella Plus.