The north-south divide for contractor pay is narrowing dramatically, according to new research by independent financial adviser Contractor Financials.
Contractors working outside London can now expect to earn an average of £109,000 each year, which is only 6% less than those in the capital who earn £117,000 an average. It is also a much smaller earnings gap when compared to permanent employees in the same regions.
The research also found that more young people have been taking on flexible work since the recession, with the majority now aged between 30 and 40. It also revealed that a 26-year-old earning £85,341 today is likely to earn 31% more, which equates to £111,895, by the time they reach 30.
Contractor Financials CEO Sat Singh said: “The north-south divide is often a topic of hot discussion but our data makes pleasant reading for those contractors working in the north – they are certainly not lagging behind when it comes to their income.”
He continued: “And of course, what this means is that they can expect a better quality of life with more disposable income. With lower living costs and house prices, those contractors living in the north can expect to secure a property for 30% less than those in London and the south.”
Mr Singh added, however, that the government is still failing to recognise the importance of contractors and freelancers, as they continue to be left behind when it comes to benefits enjoyed by their fully-employed counterparts such as insurance, mortgages and pensions.