The UK is in the midst of a savings crisis, and it is more than just a talking point for economists. Data from the Financial Conduct Authority’s ‘Financial Lives’ survey reveals that one in ten adults have no cash savings at all. An additional one in five have less than £1,000 tucked away. That means nearly a third of the population would struggle to deal with an unexpected expense. When we think about sudden time off work due to illness or injury, those statistics take on a very real and very personal meaning.

A tight budget leaves little room for the unexpected

For most households, the monthly budget is already tight. Mortgage payments, utility bills, food, childcare, and transport costs (the list could go on) all add up. Even a short break in income can make those costs feel impossible to manage, and yet, very few people are in a position to cope with such an event. The FCA’s findings suggest that over 13 million adults in the UK have low financial resilience. This includes people who have fallen behind on bills or missed repayments, or who would not be able to handle even a modest financial shock.

When people talk about financial planning, the focus often falls on mortgages, pensions, or savings goals. But protecting your income, your most valuable financial asset, is often overlooked. If you were unable to work due to illness or injury, how long would your household stay financially secure? For many, the answer is measured in days or weeks, not months or years.

Think It Won’t Happen to You? Think Again.

It’s easy to think that serious illness, injury, or unexpected time off work is something that happens to other people. But the reality is very different.

61% of the UK’s working population have experienced a life event in the last three years where protection could have provided vital support.

How income protection can help

Income protection is designed to address exactly this kind of risk. It provides a regular income if you are off work for medical reasons, helping to cover your essential outgoings and maintain some financial stability whilst you recover. It can give you the breathing space to focus on your health without the added stress of falling behind on the mortgage or dipping into costly credit.

Don’t rely on sick pay alone

Too often, people assume they will be fine because they receive sick pay from their employer. But statutory sick pay is currently just £123.25 per week, and not everyone qualifies for it. For the self-employed, there may be no sick pay at all. Even generous workplace policies can have limits, and as costs rise across the board, many households would find that any drop in income, however temporary it may be, is difficult to absorb.

Income protection policies can be tailored to your needs, with different levels of cover and deferred periods to suit your circumstances. What matters most is that the support is there when you need it, helping to keep the roof over your head and the bills paid while you get back on your feet.

In today’s climate, where so few people have savings to fall back on, having income protection is not just sensible, it’s essential. Without it, even a routine illness or injury could lead to financial difficulty, missed mortgage payments, or long-term debt.

Speak to an adviser and take control

Financial advisers work with individuals and families to help them understand their options and make confident, informed decisions. Protection should be a cornerstone of good financial planning, especially when household resilience is under pressure.

No one likes to think about being unable to work. But as the data shows, hoping for the best is not a plan. Putting income protection in place could make all the difference when life takes an unexpected turn.

Speak to an adviser now to put your plan in place, please get in touch and call us on x or email us at x.

Approved by The Openwork Partnership on 28/09/2026.

 

Grovehouse Financial Services Ltd is an appointed representative of The Openwork Partnership, a trading style of Openwork Limited which is authorised and regulated by the Financial Conduct Authority.