Working parents could be in for significant financial strain when their child is sick or injured and requires unexpected childcare, according to a new study in support of ChildShield – the UK’s only standalone child protection policy, from protection and employee benefits provider MetLife UK.
The research, which explores the challenges UK parents face, the milestones, and the financial protection they need to support them, also found that 25% working parents – who have at least one child aged 22 and under – feel concerned about the financial impact of having to take time off work to look after their child should they feel poorly or have an accident. Seventy-nine percent of parents admitted they have been or will be financially impacted in some way.
As a result, 25% have or would have to use their savings to make ends meet if they had to take unpaid parental leave. For some parents unpaid isn’t an option. As such, 18% have or would have to attempt to work while caring for their child. This comes as 50% of parents have previously had to take time off work or out of their business due to their child(ren) having an accident.
This exposes a critical gap in financial prepareration, with nearly half (48%) admitting they lack savings and don’t have a pot of money set aside in case they need to take unpaid time off work or away from their business if their child(ren) were to have an accident or feel unwell. Among parents without savings, half (55%) work part-time, and 44% are self-employed.
These findings highlight the difficult choices working parents face when their child’s health takes a turn. In addition to having to rely on savings, 11% have, or would have to borrow to pay the bills. Some parents reported that basic needs like food (16%) and rent or mortgage (5%) could be affected.
Parents financial impact of taking unpaid time off work to care for their child:
- I had/would have to use my savings – 25%
- I had/would have to cut back on luxuries – 23%
- I would have to juggle work and caring for them to avoid missing out on pay – 18%.
- I had/would have to cut back on food/shopping – 16%
- I had/would have to ask my parents/family for financial support – 13%
- My partner would have to take on extra work – 12%
- I had/would have to borrow money to make ends meet – 11%
- I had/would have to cut back on household subscriptions – 11%
- I had/would have to cancel my children’s extracurricular activities and clubs – 8%
