Fewer self-employed people are taking out disability insurance and the reason is usually financial, the government’s macro-economic policy unit CPB said on Monday.

The CPB said a quarter of self employed workers will not be have a minimum income if they become unable to work and one in 20 will end up living on welfare. Just 25% of freelancers actually take out insurance to cover them if they become unable to work.

The introduction of mandatory disability insurance for freelancers would be one option but would have both advantages and disadvantages, the CPB said.

While mandatory insurance would lead to fewer welfare benefit claims, greater economies of scale and would create a more level playing field between employees and freelancers, it would also require compulsion and could encourage irresponsible behaviour, the CPB said.