Can you afford sick pay?
14 December 2011
Living on statutory sick pay (SSP) for
just three months would result in significant financial
hardship for the majority of UK workers and could even force some
to move home, according to new research. It found that many people
greatly overestimate the level of support available while the
majority still believe they will not suffer a long term injury or
illness.
Financial concerns were cited as the main reason to get back to
work quickly if they are off sick but fears remain over returning
to work. The Aviva study showed that almost a third (30%) would
start to feel the pinch after only one month off work with an
illness while many would be forced to cut back on their health
and heating. In addition, more than half (52%) would be unable
to survive financially for more than three months.
The lack of awareness about SSP was highlighted by a quarter
(26%) thinking they would receive considerably more than they would
be entitled to, with 16% believing it was over twice as much.
However, 19% of employees know how much SSP they'd be entitled to
and a small minority (9%) said they could meet their financial
needs for a year or more if claiming it.
To make ends meet, nearly a quarter (23%) would put their health
at risk - with 14% saying they would miss important health checks
and one in ten (9%) admitting they'd put up with health ailments.
But one in ten (12%) would cut down on cigarettes or alcohol with
half (49%) eating cheaper supermarket offers and fast foods, one in
five would cut down on family holidays and 19% vowed to use less
heating and electricity. A significant number of people (44%) fear
that going back to work could cause a relapse of their condition
and a quarter (24%) worry that they won't be able to work to full
capacity.
However, the research also identified the simple steps employers
can take to help their employees have the confidence to return to
work. Just under a half (47%) of employees said their fears would
be allayed if proper support was available and a quarter (24%)
would be happier if they knew their boss would work with them to
ease their return. One in ten (15%) added they appreciate flexible
working hours.
Employers are aware that finding a solution is important, with
25% agreeing the rehabilitation process is vital, but many are
reluctant to introduce new measures; only one in ten bosses would
consider how to adapt the worker's responsibilities.
Finally, 80% of respondents thought it was unlikely that they
would actually have to deal with long term sickness. The research
found that 80% of people think long-term sickness is something that
happens to other people. However, in reality you never know what is
around the corner and few people have the savings available to
support themselves and their families for very long. Employment and
Support Allowance can come to as little as £67.50 a week - even
less than statutory sick pay - which in many cases would hardly
cover a family's food shopping, let alone their mortgage and other
necessary expenses.
If you would like to discuss taking out personal protection
insurance please give us a call on 0113 234 5528 or e-mail advice@prosperis.co.uk