The latest unemployment figures published in July, showed that the number of unemployed people currently stands at 2.47 million and the number of people unemployed for up to six months stands at 1.16 million*.

The economic recovery is still fragile and redundancy can happen to anyone at any time.  So it's realistic to consider the consequences of unexpectedly losing our income.  How would we cope?

State Benefits & Shortfall

Many people believe that they can rely on state benefits and the number of people currently claiming Jobseeker's Allowance stands at 1.46 million*.

However a single person over 25 is only entitled to £65.45 in Jobseekers Allowance per week.  With the average UK salary now standing at approximately £25,500** this would create an annual shortfall of £22,000!

Not being able to work due to an accident or sickness is also a reality.  The standard rate for statutory sick pay is just £79.15 per week, payable to a maximum of 28 weeks and Employment and Support Allowance benefit starts at just £68.95 a week.

By not protecting their income and simply relying on state allowances, your clients could find themselves with a big shortfall every month which could severely impact on their lifestyle.

For further information on Paymentshield products please visit their website: www.paymentshield.co.uk/intermediary/

The above points are based on Paymentshield's understanding of the current state benefit system with information taken from www.direct.gov.uk

* Source: Office for National Statistics http://www.statistics.gov.uk/cci/nugget.asp?id=12

** Source: Daily Mail Online: "Workers pay the penalty for recession as average annual salary drops £2,600 in just SIX months" - July 2010