· A quarter (25%) of working parents feel concerned about the financial impact of taking time off work to care for their unwell child
- This comes as 79% confirmed they have or would be impacted financially in some way with 11% confirming they have or would have to borrow money to pay the bills and 16% have or would have to cut back on food/shopping
- Although one in five (18%) claimed they would have no choice but to juggle work and caring for their child to avoid not being paid, others have no choice but to take unpaid leave, and this is resulting in one in four (25%) having to use their savings to get by
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 parents face, the milestones, and the financial protection they need to support them, also found that one in four (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. This comes as almost four in five (79%) parents admitted they have or would be impacted financially in some way. As a result, one in five (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, almost one in five (18%) have or would have to attempt to work while caring for their child. And this comes as half (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 preparedness, with nearly half (48%) admitting they lack savings and don’t have pot 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 those parents without savings, half (55%) are working 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, one in ten (11%) have, or would have to borrow to pay the bills. Some have gone as far as confirming basic needs like food or groceries (16%) have or could be impacted and rent and mortgage payments have or would be missed (5%).
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 had/would have no choice but to juggle work and caring for them to avoid not being paid – 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%
- I had/would have to cancel other support I have (i.e childcare / cleaner / gardener) – 8%
- I had/would have to take out a loan – 6%
- I had/would have to cancel financial products i.e. insurance – 6%
- I had/would have to miss a mortgage / rent payment – 5%
Rich Horner, Head of Individual Protection at MetLife UK commented: “Facing the dual pressures of parenting and professional responsibilities is a reality for many in today’s workforce, not to mention the rising costs of living which are especially heavy on those with families. But when you have a poorly child that requires you to take time off work or out of your own business, things become more challenging. The financial impact can be significant, especially for those without savings or any financial protection to fall back on, should they have to take unpaid leave.
“We understand the immense pressures that parent’s face. That’s why we offer ChildShield, to alleviate some of these stresses by providing financial protection and peace of mind should they have an accident, have to spend time in hospital, or have certain serious conditions. With ChildShield, parents can focus on their child’s recovery, knowing they have the support they need to manage the financial impact.”
To help working parents, MetLife offers ChildShield – a first of its kind product that supports families should their child(ren) have an accident or become seriously ill. From just £6 per month, ChildShield provides financial protection for situations such as having to take time off work to care for their child(ren). It aims to remove some of the stress and worry parents face – particularly if having to take unpaid time off. It covers all children in the family up to 23 years old – including stepchildren and children who no longer live within the same household, and policy holders and their families also get access to the virtual GP appointment service (GP24). This gives families fast and direct access to medical experts – including unlimited consultations with UK-based remote GPs available to book any time, day, or night, 365 days a year.
