A recent report from BHSF investigated employee finances and sick pay. It shows that UK employees are at risk of a severe financial shock in the event of ill-health. Furthermore many employees are unable to pay their household bills for more than six to eight weeks.
coping financially in the event of ill health
- 30% of employees do not know how long employers will continue to pay them in the event of sickness.
- 37% of employees have no adequate financial provision if they stop receiving their salary
- If their salary was lost employees believe they could cover their outgoings for an average of 5.7 months
- 13% of employees didn’t know how long they could cope without their salary
- 28% of employees would use credit cards would be used to finance ‘unexpected’ bills
- 36% of employees have an employer-organised scheme for sick pay insurance.
Stress caused by employee finances
- 72% of employees are worried either all or part of the time, about their own financial security in the event of ill-health.
- 33% of employees said financial worries continually or on occasion have affected their performance at work.
- 13% of employees say financial stress is a constant problem.
Statutory Sick Pay
Brain Hall, Managing Director of BHSF Employee Benefits, commented:
“The combination of a lack of savings allied to zero sick pay provision, other than the statutory minimum of £89.35 per week, leaves many employees walking a high wire with no safety net. By the time mortgages, car repayments, Council Tax and four-weekly shops are taken into account, the vast majority of the UK’s workforce will find themselves in dire financial straits in a very short period of time, many will be forced back to work when they are not fit to return.”
The report, ‘A high wire with no safety net’, an analysis of the risks posed by sick leave on employee finances is available to download here.