Study reveals that more than half of UK's gig economy workers earn less than minimum wage

More than half of gig economy workers in the UK earn less than the minimum wage, new research has found.

The study undertaken by the University of Bristol also highlighted that a quarter of gig economy workers say the nature of their work puts their safety in jeopardy.

So-called ‘gig economy’ workers are defined as those on short-term contracts or doing freelance work as opposed to those in permanent positions.

They are typically doing jobs such as private-hire driving, data entry and food delivery.

On average respondents were earning £8.97 per hour – around 15% below the current UK minimum wage, which rose to £10.42 this month.

Exactly 52% of gig economy workers are earning below minium wage.

A huge 75% of the gig economy workers questioned also reported work-related insecurity and anxiety from trying to subsist on meagre wages amid the ongoing cost of living crisis.

Alex Wood, lead author of the study, commented: “The findings highlight that working in the UK gig economy often entails low pay, anxiety and stress. As food, fuel and housing costs keep rising, this group of workers is especially vulnerable and needs to be more adequately remunerated and better protected.”

More than a quarter of respondents felt they were risking their health and/or safety by engaging in gig economy work.

The gig economy is further made distinct from traditional forms of freelance work by its reliance on digital platforms, most commonly used by drivers and delivery people.

The long periods of time workers spend logged into such platforms, waiting or looking for work, was found to be a major factor resulting in low pay rates.

When asked what would improve their situation, most respondents wanted minimum wage rates, holiday and sick pay, as well as protection against unfair dismissal.

The study involved a survey of 510 UK gig economy workers.

There was representation from across the sector, with around half being remote freelancers using platforms such as Upwork and Fiverr to pick up jobs ranging from data entry to website design.

The other half comprised local drivers providing food delivery and taxi services via platforms such as Deliveroo.