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UK tradies losing out on £1.2bn on mate rates

Posted: Thursday, December 7th, 2023

New research from Direct Line business insurance reveals tradespeople lose on average over £1,400 per year doing work for free or at reduced rates, for friends and relatives, Electrical Times reported.

This is more than the average cost of a Premiere League season ticket, which averages £1,030 for the most expensive season tickets.

It is estimated that UK tradespeople across the UK lose out on over £1.2 billion every year because of mates’ rates and working for free.

According to tradespeople, friends and family ask for favours regularly, with 62 per cent saying they are asked to do free labour and 39 per cent of those adding that the requests are frequent.

Almost three-quarters of tradespeople (73 per cent) have been asked to work at reduced rates by friends and family, with 41 per cent of those tradespeople asked to work at reduced rates regularly.

While 91 per cent say they have worked for free when asked and 89 per cent offer ‘mates’ rates’, many don’t like being asked and worry about the consequence of saying no.

More than a quarter (26 per cent) say that their relationships with friends and family have been negatively impacted by saying no to requests for free work or mates’ rates.

There is a sense of obligation at play in free or discounted labour requests, 15 per cent of tradespeople who have been asked worry that saying no would be awkward and could negatively affect their relationship with the person requesting a discount.

A further 14 per cent feel that there is a pressure or expectation for them to do the job, with another 12 per cent stating that they felt that it was unfair, as in doing the cheap labour that they were missing out on other, better paid, work.

One in 10 also felt there was pressure on them to prioritise work for their family and friends over other customers.

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