New research shows most working households have no plan for their income if illness or injury stops them working, even though most of them have rent or a mortgage to pay.
What the research found
A survey of 2,000 UK workers for the mutual Shepherds Friendly, reported on 28 October 2026, found that only 16% of full-time workers have income protection in place. That is roughly one in six.
Of those without cover, 81% rent or have a mortgage and 44% have children under 17 to support. One in five (20%) said they had already been through a spell out of work without their usual earnings, rising to 40% of 18 to 24-year-olds.
It is not a knowledge gap: 70% had heard of income protection. Instead, people are unsure what it does, whether they would qualify, and whether it is worth the cost.
Why it matters for your mortgage
Your lender expects the monthly payment whether you are working or not. Statutory Sick Pay is far below most people's take-home pay, and employer sick pay often stops after a few weeks or months. Savings can disappear quickly when the mortgage, bills and family costs keep coming.
With the Bank of England's Monetary Policy Committee due to announce its next Bank Rate decision this Thursday, 5 November (Bank Rate currently 3.75%), many households are reviewing their budgets. Protecting the income that pays the mortgage belongs in that review.
Which cover does what
- Income protection pays a monthly benefit, usually a share of your earnings, if you cannot work because of illness or injury, after a waiting period you choose.
- Critical illness cover pays a lump sum if you are diagnosed with a condition listed in the policy.
- Life insurance can clear or reduce the mortgage if you die during the term.
Self-employed people, contractors and company directors often have no employer sick pay at all, so the gap can be bigger for them.
Quick tips
- Check your employer's sick pay policy: how much, and for how long.
- Work out how many months your savings would cover your mortgage and essential bills.
- Match the income protection waiting period to when your sick pay or savings run out, which can keep premiums lower.
- Look at "own occupation" definitions and how long benefits are paid for, not just the price.
- Tell your insurer about your health honestly when you apply, so a claim is not put at risk later.
- Review cover whenever you remortgage, move or have a child.
How OMB can help
Our CeMAP-qualified advisers can look at your mortgage and your protection together, so the cover fits your payments and your budget. Read our income protection page, download the free income protection guide, or see how critical illness cover works alongside it. If you would rather talk now, book a call at a time that suits you.
Sources
- Financial Planning Today, 28 October 2026: research for Shepherds Friendly (Walnut survey of 2,000 UK workers, October 2026)
- Bank of England: Bank Rate
- GOV.UK: Statutory Sick Pay
To talk it through, contact us or start your enquiry.
Important: This guide is general information, not personal advice. Rules, rates and lender criteria change; speak to an adviser about your circumstances. Your home may be repossessed if you do not keep up repayments on your mortgage.