# 15.15, Mates' rates, family jobs and free work
Help the people you genuinely want to help. But don't let guilt or pressure drag you into working for free or for peanuts. You're running a business, not a charity, and the numbers show mates' rates quietly wipe out weeks of pay every year.
1. What mates' rates actually cost you
This isn't a guess. Direct Line researched 500 UK tradespeople and the numbers are ugly:
- The average tradesperson loses over £1,400 a year doing work for friends and family for free or at reduced rates.
- Across the industry, that adds up to roughly £1.2 billion a year lost to mates' rates and free work.
- 62% of tradespeople say they've been asked to work for free.
- 73% have been asked to work at reduced rates by friends or family.
- 26% say their relationships with friends or family have been harmed just by saying no.
- 1 in 10 feel pressure to prioritise family and friends over paying customers.
So mates' rates don't just dent your income, they strain the relationships they're supposed to protect.
2. The law doesn't care that it's your mate
Even if there's no formal contract, basic consumer law still bites if they're a private customer and you're trading.
Consumer Rights Act 2015
The Act covers contracts where a trader supplies services to a consumer. That's you doing work for a private friend or family member, even if it's "mates' rates."
- You still have to carry out the work with reasonable care and skill.
- If you don't, they can push for repeat performance or a price reduction · same as any other customer.
No contract doesn't mean no risk
Old OFT (now CMA) guidance on home-improvement contracts highlights that unclear or informal terms lead to disputes. Consumers can challenge unfair terms or poor work even when the paperwork is weak.
Even genuinely free labour as a favour isn't completely safe. Case law has shown that professionals can still owe a duty of care to friends when they provide services in their professional capacity, even unpaid.
If you're a tradie doing work in your line of business, don't assume "no contract, no risk." If it goes wrong, you can still be on the hook.
3. The problems that always come up
Direct Line's survey and legal complaints stories show the same mess over and over:
Blurry expectations
Because it's "informal," nobody writes down what's included, what isn't, or how changes are handled. That's how you end up adding extra work without extra pay, or them expecting a showroom finish on a shoestring.
Awkward conversations about money
They expect a big discount. You were counting on a proper rate. Nobody wants to be the one to say it. Direct Line found many trades feel obliged to say yes and struggle to say no, even when they can't afford it.
Jobs dragging on
Because it's your mate's place, it gets pushed to evenings and weekends, always bumped for "real" customers. They get frustrated it's taking so long. You're exhausted fitting it around paid work.
Relationship fallouts when things go wrong
Citizens Advice and legal Q&As are full of cases where building work for friends and family has gone sour and ended up in formal complaints or small-claims fights. 26% of tradespeople said relationships were negatively impacted just by saying no to requests.
The worst one
You end up dropping full-rate, low-hassle customers to squeeze in discounted, high-stress mate jobs, so you lose on both sides.
4. How experienced trades handle it
The people who stay sane tend to have simple, hard rules decided in advance.
"Materials at cost, labour full price"
You knock something off materials, but you charge your normal labour rate. Stops you working for nothing, but still feels like a favour.
"One freebie, then you're a customer"
Maybe you'll help a close mate or close family member once as a favour. After that, it's a normal quote and normal terms.
"I don't do mates' rates, I do mates' service"
Same price as any other customer, but you prioritise them in the diary where you can and maybe throw in a small extra, replace a light fitting, fix a latch, for free.
Boundaries on who counts as "mate"
Parents, siblings, best mate, maybe. Someone you haven't spoken to in five years from school? Full rate or not at all.
5. Mates' rates rules (use this so you don't get rinsed)
Rule 1, Decide who counts as "mates"
Parents, siblings, maybe one or two close friends, maybe. Old school acquaintances and "mates of mates" are customers. They pay full rate.
Rule 2, Materials at cost, labour at full rate
"I'll look after you on materials, but my labour has to be at my normal rate or I'll end up working for free."
That way you're doing them a favour without working for nothing.
Rule 3, Always write something down
Even for family, send a one-pager or text: what you're doing, what you're not, and what they're paying.
"Because it's you, I'm doing it for £X instead of £Y, here's what that includes."
That kills a lot of "but I thought you were also doing..." arguments.
Rule 4, No queue-jumping over paying customers
"I'll fit you in around existing bookings, I can't bump paying customers."
If they push, that's a red flag. You're running a business, not a hobby.
Rule 5, You can say no
"I'm really tight on time and need to focus on full-rate work at the moment, I don't want to start something I can't give 100% to."
Direct Line's data shows the average tradie loses over £1,400 a year on mates' rates. You're not being greedy by protecting your income.
6. Lines worth remembering
- If a mate genuinely values you, they'll offer to pay properly without you asking.
- Discount your price, not your standards. If they want it done on the cheap and perfect, that's not mates' rates · that's taking the mick.
- One favour per person. After that, they go in the "normal customer" pile.
- If the job is big enough that a stranger would sign a contract, your mate should too.
- If you feel a bit sick reading the message asking for a "quick favour," that's your sign to say no.
What to do next
- Read: 15.9 · Your first quote: how to not undersell yourself on day one
- Read: 15.14 · When things go wrong on your first jobs
- Read: 2.1 · Do I need a written contract?
- Read: 15.6 · The money reality: what you'll actually earn and spend in year one
- Read: 9.1 · What to do when a customer won't pay
- Download: Simple quote template (Doc Hub)
Sources (UK)
- Direct Line research (survey of 500 UK tradespeople) · £1,400 average annual loss to mates' rates, £1.2bn industry-wide cost, relationship impact data.
- Consumer Rights Act 2015 · duty of reasonable care and skill applies to all trader-to-consumer services, including informal agreements (legislation.gov.uk).
- OFT / CMA guidance on home-improvement contracts · risks of informal terms, consumer rights in unclear agreements.
- Citizens Advice · complaints and small claims arising from friend/family building work.
- Case law on professional duty of care · professionals can owe duty of care even in unpaid/informal arrangements.
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