New data from Fiverr’s third annual UK Future Workforce Index reveals that over a third (35%) of UK businesses are saving over £40,000 per month by turning to freelancers – with the average monthly saving exceeding £33,000 – highlighting the hard value of workforce flexibility in today’s challenging economic climate.
Based on a survey of 1,500 freelancers and business leaders*, the report reveals how Britain’s labour market is undergoing a quiet but significant shift toward a more agile, fluid workforce.
As economic pressures persist and AI continues to transform industries, businesses are increasingly turning to tech-savvy self-employed talent to plug critical skills gaps, drive innovation and stay competitive – with freelancers offering a vital edge in the face of ongoing UK hiring challenges.
This shift comes as concerns grow over the UK’s global competitiveness. With other economies ramping up AI investment, British businesses are moving beyond traditional hiring models to stay ahead. Freelancers – agile, tech-literate, and AI-equipped – are becoming the country’s fast-adapting digital workforce.
Yet despite the momentum, outdated policies and tax structures – notably IR35 – remain a major hurdle. Both businesses and freelancers are now calling for urgent policy reform to break down those barriers and unlock the full potential of the flexible economy.
As the UK labour market cools, 35% of decision makers say hiring full-time staff is proving difficult, with with almost half (49%) citing low quality and availability of talent as a key barrier as the biggest hurdle and nearly 41% citing high salary expectations as another key barrier. Under mounting pressure to stay lean and agile, UK businesses are turning to freelancers at record levels. 87% plan to engage freelancers up to 10 times in the next six months, driven by demand for flexibility and specialist expertise. For many, it’s now business as usual: 40% are working with more freelancers in 2025 than ever before.
The business case is clear: flexibility pays. Over one in three companies report saving over £40,000 per month by working with freelancers. In a time when every pound and hour counts, 25% of leaders say freelancers save them over 20 hours a week – proving that agility and efficiency go hand in hand.
One in 5 business leaders now rely on freelancers to deliver critical AI skills they lack in-house, and 38% are actively seeking new hires with AI expertise. On the flip side, freelancers are already cashing in; 46% report increased earnings thanks to AI, and 44% are charging a premium for AI-driven work.
The AI toolkit is now central to freelance work: 70% use ChatGPT, with Google (38%), Gemini (33%) and Microsoft Co-Pilot (24%) gaining traction. For many, AI is now indispensable – over half say they couldn’t imagine working without it, some report saving as much as two full workdays with AI. Yet despite these benefits, 36% worry that AI could eventually automate parts of their role in the long term.
Systemic barriers still hold the freelance economy back. Two in five (40%) business leaders cite HMRC bureaucracy and/or IR35 tax legislation as major obstacles to working with freelancers. Freelancers are feeling the impact too: 51% believe IR35 is harmful for their careers, while 55% believe current tax laws actively deter businesses from hiring them.
Confidence in political support is low and many are calling for more meaningful reforms. Only 39% of freelancers feel adequately supported by the government, and 66% believe the current administration is failing to meet their needs.
Beyond the AI headlines, a quieter economic revolution is reshaping the workforce – one powered by individuals taking control of how they work. Over 80% of freelancers now set their own hours with nearly three-quarters dictating their own rates, and for many, the return is clear: 70% are now earning more than they did in full-time employment.
Income diversity is also reshaping modern work as 70% of today’s self-employed workers now rely on at least two income streams.
Freelancing may be unlocking new opportunities, but gender disparities remain stark. Just 62% of women feel they are paid fairly, compared to 71% of men. Fewer women are taking on AI-related projects (46% versus 51% of men) in the last six months, and men are more likely to charge a premium for AI work. The message is clear: more must be done to ensure equal access to AI opportunities through better support, visibility and upskilling for underrepresented group.
Michele Tropeano, UK Country Manager at Fiverr said, “Our latest UK Future Workforce Index shows a clear shift: freelancers are no longer a fallback – they’re driving business growth and leading the charge on AI adoption. Portfolio careers are moving mainstream and becoming the backbone of the UK workforce. But to truly harness this potential, we need modern policies and systems that support this new way of working, not hold it back.”
