More than a third of UK workers are not entitled to company sick pay, according to a survey by LV=.
The research shows that 34% workers are without an employer’s sickness cover due to a rise in the number of self-employed people and employees on zero-hours contracts.
Of all UK workers:
- 9% are self-employed
- 25% work for a company but would only receive statutory sick pay (SSP) of £88.45 a week if they became ill.
Of the workers receiving SSP, 15% are on zero-hours contracts and 10% have not worked for the company long enough to qualify for company sick pay.
The growing number of people working for small and medium-sized businesses (which provide less generous sick pay packages) has meant that many of those entitled to company sick pay do not get their full salary for an extended period.
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.”