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6 October 2026
7-minute read
Inside the UK's side hustle economy
Be your own boss, on the side. That's the pitch behind the UK's side hustle boom: a bit of extra income, built around a main job, with a lower risk of going it alone. For many Brits, it's working. A recent survey shows the average side hustler in the UK now earns £700.50 a month, around £8,406 a year, for almost 16 extra hours of work a week on top of their day job.
But a side hustle is still a business, and that's where things start to unravel. We look at who is side hustling and why, what they're really earning, and what it's costing them in hours, sleep and headspace. We’ll also examine the gap that matters most: the tax confusion and lack of business insurance that’s leaving side hustlers financially exposed, often without them realising it.
Side hustle nation: Brits dipping a toe into entrepreneurialism
Side hustling in the UK is no longer a niche pursuit. Nearly 4 in 10 (39%) side hustlers now run more than one extra earner at once, and the range of ventures on offer stretches from quick, low-effort options like survey participation to fully-fledged creative and digital businesses, online retailer setups and craft business ventures. For many, this is a genuine first step into entrepreneurialism: testing an idea, a skill or a passion alongside the safety net of a main job.
| Rank | Top 10 side hustles in the UK |
| 1 | Market research or survey participation |
| 2 | Freelance creative services (photography, graphic design, writing, video production) |
| 3 | Content creation or influencing (blogs, podcasts, YouTube, social media) |
| 4 | Selling second-hand, vintage or refurbished goods |
| 5 | Selling handmade goods (prints, pottery, jewellery, crafts) |
| 6 | Social media management or digital marketing |
| 7 | Tutoring, teaching or educational services |
| 8 | Technology services (web development, coding, IT support) |
| 9 | Selling digital products (online courses, templates, printables) |
| 10 | Professional services (consulting, bookkeeping, legal support) |
Two of these are worth a closer look. Selling second-hand, vintage or refurbished goods, essentially becoming an online retailer, is the fourth most common side hustle in the UK, and women are more than twice as likely as men to be doing it (11% vs 4%). Selling handmade goods, from prints and pottery to jewellery and crafts, sits at number five: a craft business built from a kitchen table or spare room, or - as is increasingly the case - a proper trading operation with its own customers, deadlines and liabilities.
The wider pattern splits fairly cleanly by demographic. Men are more likely to have a side hustle in technology services such as web development, coding or IT support (5% compared to 2% of women). Millennials are the generation most likely to monetise creative and digital skills, with 11% in freelance creative services and 9% in content creation or influencing. Baby Boomers, by contrast, lean towards low-effort, flexible options: 35% say survey participation is their main side hustle, and 22% sell second-hand or refurbished goods.
From passion project to financial lifeline
Enjoyment and entrepreneurial ambition still play a part, but survey results suggest the cost of living has become the dominant force pushing Brits into side hustling and keeping them there. For some generations this is about topping up essentials; for others, it's the first rung on the ladder to full self-employment. Either way, the pressure is intensifying: the majority now say their side hustle has become more important to their finances over the past year.
| Motivation for starting a side hustle | % |
| To feel more financially secure | 33% |
| To keep up with the rising cost of living | 32% |
| Because I enjoy the work | 31% |
| To monetise a hobby or personal skill | 28% |
| To save for a specific goal | 24% |
| To eventually become self-employed full-time | 23% |
| To develop new skills or gain experience | 22% |
| Because I was dissatisfied with my main job or career progression | 18% |
60% say rising living costs have made their side hustle more financially important, 54% say it's more financially important than a year ago, and half (50%) now rely on their side hustle income to help cover essential expenses. Fifty-two per cent expect that reliance to grow further over the next three years.
Baby Boomers are side hustling out of necessity more than any other generation, with 47% citing the cost of living as their motivation, the highest of any age group. Gen Z is chasing security instead: 41% say financial security motivated them to start, also the highest of any generation. Millennials stand apart for ambition rather than necessity: 28% started their side hustle to eventually become fully self-employed, compared with 16% of Gen Z and Gen X and just 4% of Boomers. And that ambition runs deep - half (50%) of Millennials say they would leave their main job entirely to pursue their side hustle full-time if they had the opportunity, and 58% of all side hustlers say they'd carry on even if they no longer needed the money.
The £8,400 second salary: what side hustlers are really earning
For the effort involved, side hustles are paying off. The average side hustler earns £700.50 a month, equivalent to roughly £8,406 a year if kept up consistently, with more than half earning at least £500 a month and over a quarter earning £1,000 or more. Fifty-two per cent say their side hustle income has increased over the past 12 months.
| Monthly side hustle earnings | % |
| Less than £100 | 9% |
| £100 to £249 | 17% |
| £250 to £499 | 18% |
| £500 to £999 | 26% |
| £1,000 to £1,499 | 20% |
| £1,500 to £1,999 | 7% |
| £2,000+ | <1% |
| Prefer not to say | 4% |
Not everyone benefits equally. Men earn around 22% more than women from their side hustles, £744 a month versus £610, a gap of roughly £134 a month, or £1,606 a year. Household income widens the gap further still: those earning over £75,000 a year make £1,002 a month on average from their side hustle, compared with just £132 a month for those on £15,000 or less.
Earnings also build with time. Side hustlers make an average of £234 a month in their first six months, rising to £623 after 6 to 11 months, £777 after one to two years, and peaking at £886 in years three and four, before dipping to £474 among those running their side hustle for five years or more, which could be a sign it has either matured into something steadier or been scaled back.
The second shift: hard work, long hours and sacrifices
That extra income doesn't come for free. The average side hustler puts in nearly 16 hours a week on top of their main job (15.77 hours, to be precise), the equivalent of two full working days, and the impact is being felt in sleep, relationships and mental health.
Millennials put in the most hours (17 a week on average), compared with 13 for Gen Z, 15 for Gen X and 12 for Baby Boomers. Men spend slightly more time on their side hustle than women (16.3 vs 14.8 hours a week). Nearly half (48%) have sacrificed sleep, rest or downtime to make it work, 46% have worked on their side hustle during annual leave, and 42% have spent less time with friends, family or partners.
The toll shows. Forty-four per cent have experienced burnout from juggling their side hustle, and 38% say it has negatively affected their work-life balance. A significant minority are blurring the line further still: 39% work on their side hustle during hours meant for their main job, rising to 46% of Millennials, and 41% have hidden their side hustle from their employer altogether, again highest among Millennials at 50%. Unpredictable income (29%) and burnout or exhaustion (23%) are among the biggest challenges side hustlers report.
The tax confusion holding side hustlers back
For a significant minority, the admin side of side hustling is proving just as challenging as the work itself. Twenty-nine per cent of side hustlers do not feel confident that they understand their tax responsibilities, and a further 9% are unsure, meaning 38% in total cannot confidently say they understand their obligations.
That confidence gap widens considerably among younger, newer side hustlers. It's lowest among Millennials (60% confident) and Gen Z (59% confident), compared with 64% of Gen X and as high as 86% of Baby Boomers. Confidence also grows the longer a side hustle has been running: from around half of those running theirs for under six months, up to over three-quarters of those running theirs for five years or more. Managing tax or admin is cited as a top challenge by 17% of side hustlers overall, suggesting many side hustlers may benefit from better understanding of their tax obligations.
The protection gap: are side hustlers prepared for the risks?
Insurance and legal responsibilities are another area many side hustlers may not have fully considered. A third of side hustlers (33%) say their work involves activities that could cause injury, damage or financial loss to others, yet more than half (54%) have no insurance in place specifically covering their side hustle. Half (50%) didn't even consider whether they needed business insurance before starting out, and confusion around what their existing home or personal cover actually protects is widespread: 43% believe their existing home or personal insurance would cover their side hustle activities, 43% believe it would not, and a further 14% are unsure.
The worry is real, even if the action doesn’t always follow. Thirty-eight per cent have worried that a mistake made through their side hustle could leave them financially liable, and 39% have worried that a customer complaint could have serious financial consequences. Almost half (46%) say the financial impact of a claim or legal dispute would be difficult for them to manage, and only 60% feel confident they understand the risks associated with running their side hustle at all.
From side hustle to main hustle: what's next?
The hustle seems to be heading one way. More than half (52%) say their side hustle is part of their long-term future, and 59% say they'd continue doing it even if they no longer needed the extra income. More than 4 in 10 (43%) would leave their main job to focus on their side hustle full-time if they had the opportunity, rising to half of Millennials, compared with 44% of Gen Z, 30% of Gen X and just 10% of Baby Boomers.
As more side hustlers plan to scale into a full-time business, whether that's an online retailer built from a spare room or a craft business turning a hobby into a trade, the case for proper protection only gets stronger. A part-time sideline can outgrow the assumptions it started with, often before the person running it notices.
Hustle like a pro: what to consider
Before you start
- Understand whether your activity could cause injury, damage or financial loss to someone else.
- Check whether any of your existing insurance policies - such as home insurance - cover any side hustle activity.
- Research what insurance cover your side hustle could need. Depending on your activities, covers you may want to consider include public liability insurance, professional indemnity insurance or business equipment insurance.
Once you're up and running
- Keep clear records of income and expenses for tax purposes.
- Revisit your cover as your side hustle grows or earnings increase.
- Be ready to answer a client or customer if they ask about insurance.
Signs it's time to review your cover
- You're earning consistently, not just occasionally.
- A customer or client has asked if you're insured.
- You’ve taken on volunteers or part-time helpers
- Your side hustle now involves other people's property, safety or money.
Conclusion
The UK's side hustlers are ambitious, resourceful and increasingly reliant on the extra income they generate, but that hard-won £8,400 second salary is coming at a cost. Between the burnout, the long hours and the tax confusion, it's the protection gap that stands out most: over half do not have insurance specifically arranged for their side hustle.
As side hustles continue to blur into full-time enterprises, treating them with the same seriousness, including the right cover, including considering whether insurance may be appropriate as the venture grows.
It's what turns a side hustle, whether that's an online retailer, a craft business or something else entirely, from a financial risk into a sustainable second income.
Methodology
The research was conducted by Censuswide, among a sample of 1,006 UK consumers who have a side hustle. Data was collected between 02.07.2026 and 09.07.2026. Censuswide is a member of the Market Research Society (MRS) and the British Polling Council (BPC), and a signatory of the Global Data Quality Pledge, adhering to the MRS Code of Conduct and ESOMAR principles.
