UK Cost of Living and Income Protection 

The rising costs of living have a direct effect on employment and the working lives of many. Whereas post lockdown, a large proportion of the UK workforce had been prioritising work/life balance over pay, the continued rising costs of living have forced many to reassess this as the leading priority. Similarly, the struggle to meet the costs of living may affect employee’s mental health in ways that are not always obvious to the employer, this, coupled with the urge for many to find additional sources of income, means employees become overstretched financially, mentally and physically.

Then of course there is the aforementioned impact on employers themselves, where the cost of materials forces a re-evaluation of overheads and the potential for restructuring or downsizing that may result, putting jobs at risk and further, increased pressure on the affected households.

So, what can an individual household do to help remain on top of rising costs when prices continue to rise?

Many people will already be looking for ways to cut back on spending to reduce weekly outgoings, this involves careful budget management. However, there are further steps that can be taken to ensure that;

1. your household is receiving all the financial help it is entitled to;
2. where possible, a proportion of your income is protected by a suitable income protection insurance policy;

Government Help for Households
To help tackle to cost of living crisis household by household, the UK Government has launched its ‘Help for Households’ campaign. Help for Households is designed to help people claim the Government support they are entitled to depending on their circumstances. Packed with tips and resources, including links to a handy tool to help you check what support might be available to you, it is a useful resource for anyone who might need extra help with household bills, childcare costs or energy fees.

Income Protection Insurance
Those able to make a portion of their existing budget work for them may wish to protect a percentage of their regular income against being unable to work due to accident, sickness or unemployment, by purchasing an income protection policy.

Depending on the type of policy chosen, and after an initial wait period, income protection can pay a monthly benefit payment as percentage of your working salary in the short-term to help towards the costs of household bills, such as mortgages, rental payments and other living expenses.

As with all insurance policies, it is important to take the time to familiarise yourself with the terms and conditions of the policy before purchase, including what is and is not covered, to make sure the policy fully meets your needs. This also includes ensuring you feel comfortable in meeting the monthly premium cost of the policy itself.