A third of UK workers without sick pay - LV=

clock • 1 min read

Company sick pay is not available to 34% of working Britons, amounting to 11m people, research by LV= has revealed.

Of the 11m, 8m are employed by a company but would only receive statutory sick pay if they fell ill, £88.45 per week, over £300 less than the average UK weekly pay of £409.

Among those who would only receive statutory sick pay 15% (1.2m) are on zero-hours contracts while 10% have not worked long enough to qualify for their company sick pay scheme.

Temporary and short-term workers similarly would not receive company sick pay, accounting for 23% of the 8m who would not receive it.

The 9% of the UK workforce who are self-employed would not receive any pay if they were ill.

Employees working for SMEs are also potentially vulnerable LV= warned, since they tend to have less generous sick pay packages, with 36% of employees in their twenties working for them.

This compares to 18% of over 50s working for SMEs, highlighting the greater potential vulnerability.

Myles Rix, managing director of protection at LV= said: "The UK economy is changing, with zero-hours contracts, freelancing, contract work, and self-employment all becoming more common.

"As a result, fewer workers now qualify for company sick pay, meaning they could struggle to meet their financial commitments if suddenly unable to earn a salary due to accident or illness.

"A contingency plan such as income protection offers workers peace of mind so they can focus on recovering without worrying about whether they can pay their bills."

 

More on Income Protection

To retirement or not to retirement

To retirement or not to retirement

IP is the Question

IPTF
clock 05 November 2024 • 3 min read
IPTF announces restructure

IPTF announces restructure

Andrew Wibberley steps down

Jaskeet Briah
clock 24 October 2024 • 3 min read
Scottish Widows enters income protection market

Scottish Widows enters income protection market

Provider joins CIExpert's Insight Zone

Jaskeet Briah
clock 08 October 2024 • 4 min read

Highlights

COVER Survey: Advisers damning of protection insurer service levels

COVER Survey: Advisers damning of protection insurer service levels

"It takes longer than ever to get underwriting terms"

John Brazier
clock 12 October 2023 • 5 min read
Online reviews trump price for young people selecting life and health cover

Online reviews trump price for young people selecting life and health cover

According to latest ReMark report

John Brazier
clock 11 October 2023 • 2 min read
ABI members with staff neurodiversity policy nearly doubles

ABI members with staff neurodiversity policy nearly doubles

Women within executive teams have grown to 32%

Jaskeet Briah
clock 10 October 2023 • 3 min read