Financial Impact of Sickness Calculator UK
How Our Sickness Calculator Helps UK Households Prepare for Unexpected Financial Shocks
What would happen if you were suddenly too ill to work for a month? Or three months? Or even longer? For most UK households, an unexpected illness can quickly turn into a financial crisis. Bills don't stop just because your income does.
This is a worry that keeps many people up at night. But guessing the financial impact isn't helpful. You need real numbers to understand your risk and prepare properly.
That's where our simple, free tool comes in. The Financial Impact of Sickness Calculator is designed to give you a clear, personalised picture of how your finances would hold up if you were unable to work due to sickness or injury. In just a few minutes, you can move from vague worry to a concrete plan of action.
The Reality of Sick Pay in the UK
Many people believe their employer or the government will fully support them if they get sick. Unfortunately, the reality is often very different.
Statutory Sick Pay (SSP): If you're an employee, you may be entitled to SSP. As of 2024/25, this is just £116.75 per week, paid for a maximum of 28 weeks. For most people, this is a tiny fraction of their regular income. Could your family survive on that?
Employer Sick Pay: Some employers offer a more generous sick pay scheme, perhaps offering your full salary for a few weeks or months. But this is often limited. Do you know exactly what your contract says? How long does your full pay last before it drops to half pay, or to just SSP?
Relying on these limited safety nets without a personal backup plan is a huge gamble. Your savings can disappear in a flash when you're trying to cover your mortgage, rent, food, and energy bills on a reduced income.
How to Use Our Financial Impact of Sickness Calculator
Our calculator is designed to be quick and easy to use. You don't need to be a financial whizz to get a clear result. Just gather a few basic details and follow these steps.
Step 1: Enter Your Financial Details
First, we need to understand your current financial situation.
- Your Monthly Take-Home Pay: How much do you receive in your bank account each month after tax?
- Your Essential Monthly Outgoings: Add up all your non-negotiable bills. This includes your mortgage/rent, council tax, utilities (gas, electricity, water), food, phone, and travel costs.
- Your Current Savings: How much money do you have set aside that you could use in an emergency?
Step 2: Tell Us About Your Sick Pay
This is where you tell the calculator what support you'd get from work.
- Weeks on Full Pay: How many weeks would your employer pay your full salary? (Enter 0 if none).
- Weeks on Half Pay: After full pay ends, how many weeks would you get half pay? (Enter 0 if none).
- Estimated Time Off Work (Weeks): How long do you want to test your finances for? Start with a medium-term period like 12 or 26 weeks.
Step 3: See Your Results
The Financial Impact of Sickness Calculator will instantly show you:
- Your Total Income Shortfall: The total gap between your reduced income and your essential outgoings over the period you're off work.
- How Long Your Savings Will Last: A clear timeline showing when your savings would run out.
- A Week-by-Week Breakdown: A simple chart illustrating how your income and savings change over time.
Worked Example
Let's look at Sarah, a marketing manager.
| Input | Sarah's Details |
|---|---|
| Monthly Take-Home Pay | £2,500 |
| Monthly Essential Outgoings | £2,000 |
| Current Savings | £5,000 |
| Weeks on Full Pay (Employer) | 4 weeks |
| Weeks on Half Pay (Employer) | 4 weeks |
| Estimated Time Off Work | 26 weeks (6 months) |
The Result:
The calculator shows that after Sarah's 4 weeks of full pay and 4 weeks of half pay, her income drops to SSP (£116.75 per week). Her monthly shortfall becomes significant. The calculator projects that her £5,000 savings will be completely gone by week 19, leaving her with 7 more weeks of sickness with no financial cushion left. This is the financial shock our calculator helps you foresee.
Common Mistakes When Planning for Sickness
People often make simple errors when trying to guess their financial resilience. Our calculator helps you avoid them.
- Overestimating Sick Pay: Many assume their "good" company sick pay will last for ages. It rarely does. You need to know the exact number of weeks.
- Underestimating Expenses: It's easy to forget smaller "essential" bills like phone contracts, insurance premiums, or car running costs. Be realistic when adding up your outgoings.
- The "It Won't Happen to Me" Mindset: Thinking that a long-term sickness is unlikely is the biggest mistake of all. It can happen to anyone at any time, through illness or accident.
- Relying Only on Savings: Savings are crucial, but they are a one-off fund. A serious illness requires a long-term income solution, not just a temporary patch.
What to Do After You Get Your Result
Seeing a large potential shortfall can be scary, but don't panic. The result from the Financial Impact of Sickness Calculator is your first step towards taking control. Here’s what to do next.
- Review Your Budget: Can any "essential" outgoings be trimmed? Are there subscriptions you can cancel or cheaper suppliers you can switch to?
- Build Your Emergency Fund: Aim to have at least 3-6 months' worth of essential outgoings in an easy-access savings account.
- Explore Financial Protection: For a true long-term safety net, you need to consider protection insurance. This is designed specifically to pay out when you need it most.
The Role of Insurance: Protecting Your Income and Health
The calculator shows you the size of the financial hole a sickness could create. Insurance is what you use to fill that hole. At WeCovr, we help UK customers find the right cover to protect their families and finances.
Income Protection Insurance
This is the most direct solution. If you're unable to work due to any illness or injury, an income protection policy pays you a regular, tax-free monthly income until you can return to work. It's designed to replace a large portion of your salary and cover your bills, protecting your savings and your lifestyle. The shortfall figure from our calculator is the perfect starting point for deciding how much cover you might need.
Private Medical Insurance (PMI)
Whilst income protection replaces your salary, Private Medical Insurance (PMI) is designed to help you get treated and back on your feet faster. It gives you access to private healthcare, helping you bypass long NHS waiting lists for eligible treatments. A faster recovery means getting back to work and earning again sooner.
It is important to understand that in the UK, PMI is designed to cover acute conditions that arise after your policy begins. It does not cover pre-existing conditions (illnesses you already have) or chronic conditions (long-term illnesses that cannot be cured, like diabetes or asthma).
Life Insurance
Sickness can sometimes be life-threatening. Life Insurance provides a tax-free lump sum or regular income to your loved ones if you pass away. This can help them pay off the mortgage, cover funeral costs, and maintain their standard of living during an incredibly difficult time. It provides peace of mind that your family will be financially secure, no matter what.
As expert brokers, WeCovr can help you compare quotes for all these types of cover. We can also often secure discounts if you take out more than one type of policy, such as life insurance and PMI together. Furthermore, all our customers get complimentary access to CalorieHero, our AI-powered calorie and nutrition tracking app, to help you stay on top of your health and wellness goals.
Frequently Asked Questions (FAQs)
What is Statutory Sick Pay (SSP)? Statutory Sick Pay is the minimum amount UK employers must pay to qualifying employees who are off work sick. For the 2024/25 tax year, it is £116.75 per week for up to 28 weeks. It's a very basic safety net and usually not enough to cover household expenses.
Why would I need Private Medical Insurance if we have the NHS? The NHS is a fantastic service, but it is under immense pressure, leading to long waiting lists for many treatments. Private Medical Insurance (PMI) allows you to bypass these queues for eligible conditions, giving you faster access to specialists, diagnosis, and treatment. This can speed up your recovery and reduce the time you need to be off work.
How do I know how much income protection I need? A good rule of thumb is to cover your essential monthly outgoings (mortgage/rent, bills, food) plus a little extra for unforeseen costs. The "Total Income Shortfall" figure from our calculator gives you a very clear idea of the gap you need to fill. An adviser can help you pinpoint the exact amount of cover that's right for you.
Can I use the calculator if I'm self-employed? Yes, absolutely. If you're self-employed, you won't have any employer sick pay, so you would enter '0' for the 'Weeks on Full Pay' and 'Weeks on Half Pay' sections. This makes the calculator even more important for you, as it will starkly illustrate how quickly your income stops when you're unable to work.
Don't leave your family's financial future to chance. Take two minutes to understand your personal risk.
Use the Financial Impact of Sickness Calculator now to see your results, and then speak to WeCovr for a free, no-obligation quote to put your financial safety net in place.
