Penny Batchelor
November 20, 2024
Reading time: 5 minutes
Updated 11/20/2024
It's important to reconsider how you'll make money if you suddenly become incapacitated. You may be able to do what you've always done, or your changing circumstances may force a career change.
When you experience a life-changing event, thinking about money may be the last thing you want to do. But at some point you have to weigh your options. Then, determine how long-term illness and disability will affect your finances and what help you may be eligible for.
It's also worth noting that, in some cases, a disability can increase living costs by an average of £1,010 per month – so you'll need to find ways to earn more than you would if you worked sometimes.
Here is our advice:
Get everything in order
First, gather any important documents you may need. These must include your employment information and social security number.
If you have private health insurance and use it for your treatment, you will need your membership details. Don't forget to speak to your insurer before starting treatment to make sure the treatment is covered by your policy.
If you have income protection and/or critical illness insurance, now is the time to let them know your circumstances.
Self-help groups
There are support groups for most illnesses and diseases. These groups can advise you on emotional and financial matters and provide support for you and your loved ones.
Hospitals often offer reduced parking fees for visitors to seriously ill patients. You can usually also park for free for outpatient appointments if you have a Blue Badge. Hospitals must clearly publish their parking prices online.
The hospital will not discharge you until they are satisfied that you have a safe and accessible environment to return to. If necessary, your home will be assessed by an occupational therapist. They will advise you on any necessary adjustments so that you can live safely and comfortably at home. The NHS may provide some equipment and your local authority may give you a grant to cover the costs.
Sick pay
Regularly inform your employer about your condition and progress when you plan to return to work. If you are unable to work for more than seven days, your employer will need a letter from the hospital or your family doctor. These used to be called health certificates, but today they are called fit slips. Your fitness certificate may include information about when your doctor expects you to be able to return to work and whether the return will need to be gradual or adjustments will need to be made.
If you are unable to return to work for more than a month, you are considered to be on long-term sick leave. In this case you are still entitled to annual leave.
You may be entitled to full sick pay for a certain period of time; Please refer to your employment contract or employee handbook for details about your workplace. If you are not entitled to sick pay because of your work, you may be entitled to Statutory Sick Pay (SSP). Employees, including temporary workers, receive this payment from their employer and are entitled to it if they have been sick for more than three days in a row (including non-working days such as weekends or days on which they are not scheduled to work shifts). . Or if they earn at least more than £123 per week before tax and have informed their employer of their illness.
In total, statutory sick pay lasts up to 28 weeks and is £116.75 per week.
Self-employed people are not entitled to SSP unless they are paid via PAYE by a limited company.
When sick pay runs out
It is in both your own and your employer's interests to consider what adjustments can be made to help you return to work. Your trade union, if you belong to one, can advise you on this.
You can apply for work support benefit if you are unable to work and your sick pay has run out. Apply for ESA if you are under state pension age, no longer receive statutory sick pay and are not entitled to Universal Credit.
You must take part in a fitness to work assessment, where a medical professional will assess your ability to work. Take the relevant documents from your doctor or hospital with you. The decision will be communicated to you in writing.
There are three possible outcomes:
- You are considered fit for work and are not entitled to ESA. However, you can still claim Universal Credit.
- Alternatively, you could be placed in the work-related activity group and required to attend regular meetings with a counselor.
- Finally, you could be accepted into the support group and not have to attend interviews with a counselor. However, you can take part in interviews if you wish. The self-help group pays a higher weekly amount than the professional group.
You can appeal the decision if you disagree with it.
There are two types of ESAs depending on your previous income and social security contributions:
- The contributory ESA is payable for one year if you are assigned to the professional group and have paid sufficient social security contributions. There is currently no time limit for claiming Contribution-Based ESA if you are a member of the support group.
- Income-dependent, for low earners independent of their social security contributions.
ESA is paid every two weeks and is either £91.50 a week if you are under 25 or £138.20 if you are over 25.
More benefits
If your income is reduced due to illness or disability, you may be entitled to other benefits. Citizen's Advice can help you find out what, if any, you should apply for. It is also a free service.
Possible benefits include housing benefit such as: B. a reduction in council tax if you are responsible for paying the tax and have a low income. Or Personal Independence Payment (PIP), a benefit to cover the additional costs caused by physical disability, learning disability and mental illness. Applying for PIP can be difficult. That's why the charity Turn2Us has launched the PIP Helper, a tool to help people apply.
If your partner or other relative has had to give up their job to look after you, is over 16 and cares for you for more than 35 hours a week, they may be entitled to Carer's Allowance.
If you are having difficulty paying bills such as rent, mortgage or utilities, let the relevant companies know as soon as possible. They may be able to help you with a repayment plan or offer you a discounted rate. Don't wait until you're behind.
Power of attorney
Ultimately, it is in everyone's best interest, whether disabled or not, to consider speaking to an attorney about granting power of attorney. This gives a named representative the authority to take control of your finances if you are unable to do so, and can also make health care decisions on your behalf if you are incapacitated. Non-disabled friends and family may also want to purchase income protection insurance themselves in case they become ill or disabled in the future.
Useful links
Gov.uk – British government website
www.citizensadvice.org.uk – Citizens Advice
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