3.8m families 'a single pay check from losing their home'
15/04/2014
Almost 4 million families only have enough savings to pay a single month of mortgage repayments or rent, meaning they would be likely to lose their home if they found themselves out of work.
Homeless charity Shelter surveyed 7,500 people and found that many people were living with the prospect of losing their home if they found themselves out of work.
Better short-term support
The charity has said that the government needs to provide more short-term support to those who lose their job.
However, the government stated that it already spends around £94bn a year on benefits to those who are unemployed or on low incomes, including £24bn on housing benefits.
Families with children at risk
The findings showed that working families with at least one child under the age of 18 were at the highest risk. It was claimed that 44% of families in this category have insufficient savings to pay their mortgage or rent for more than a month.
A helpline adviser at Shelter said: "Every day we see the proof that just one piece of bad luck, like a sudden job loss or illness, could tip any of us into a spiral that puts the family home at risk.
Alternative solutions
Although options may be limited in terms of protecting yourself against the loss of income through being made redundant, it is possible to protect your income from the risk of not being able to work due to sickness or an accident.
Many insurers offer Income Protection and could pay you a tax-free income of up to 70% of your current wage if you were unable to work due to sickness or an accident.
However, there is currently low awareness of this insurance product and many families feel they cannot afford this kind of insurance. Despite this, some providers offer Income Protection from as little as £5 a month.
Need advice?
Are you worried that being unable to work would affect your ability to support your family? Ask a question to one of our expert financial advisers online or by calling 0800 092 1245.
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