Workers redundancy fears escalate, says British Insurance

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Over 17million UK workers* - nearly six in 10 - are worrying about job security according to a survey** undertaken by online Income Protection Insurance Provider, British Insurance.

The firm says 59% of workers are fearful of redundancy, up 7% from last year, and 8% higher than when research was first commissioned in May 2010.

Despite increasing nervousness around future earnings, fewer workers have plans in place to prevent debts escalating if their salary goes. In May 2010, one in five respondents had unemployment insurance, now only 14% do.

The remaining 86% plan to bridge any income gap using; savings, family, State benefits, credit cards, the Lottery or they don’t know what to do.

British Insurance Managing Director Nel Mooy, comments: “Although we’re told the UK is coming out of a recession, this confidence is clearly not shared by the majority of workers. And with economists predicting the economy will stagnate over 2012 or worse, suffer a deep recession if the Euro-Zone situation deteriorates, it’s advisable to have a plan to replace any future lost income without dipping into savings or falling into debt.”

Although only a small percentage of workers have Income Protection – an increasing number are buying cover online, following the Competition Commission’s recommendations to source policies independently from their credit arranger. Previously ranked fifth as a purchase option, internet providers are now second, alongside Independent Financial Advisers. Banks and mortgage lenders currently retain the top spot.

Nel concludes: “People are realising online firms offer more competitive premiums; however, I worry many only consider Payment Protection Insurance – also known as short-term Income Protection – once they’ve heard their job may be at risk. Most policies have an initial exclusion period of 120 days after their start date, which means if you’re unemployed within the first four months of taking out cover, you won’t be able to claim. So apply for cover whilst your job is secure.”

To find out more about short-term Income Protection visit http://www.britishinsurance.com

Ends

Note to Editors

  • Office for National Statistics – labour market estimates – June to August 2011 – 29.10m. 59% of 29.10m = 17.169m

** Survey undertaken by TNS Omnibus - 676 16-64 year-old full or part-time workers were questioned online from 6 – 10 October 2011.
Full survey results and data available upon request

British Insurance is a widely-recognised consumer champion and one of the UK’s leading independent providers of Payment Protection Insurance.

British Insurance has a Linked In profile at http://www.linkedin.com/company/british-insurance and can be followed on Twitter at Twitter: @britishins

British Insurance is a trading name of Towergate Underwriting Group Limited who are authorised and regulated by the Financial Services Authority.

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Emma Andrews

Francesca Breeze

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