Income Security During Sickness Absence. What Do British Middle‐classes Do?

Abstract

AbstractIncome maintenance during sickness absence is an under‐researched field within social policy analysis, and yet it is conducive to exploring the interplay between statutory, corporate and private forms of income protection. Drawing on original qualitative interview data, the article shows that British middle‐class couples largely ignore or dismiss public provision, which is due to a relatively low level of sickness benefits, but also based on misconceptions about social rights and the role of employers as mandatory (and voluntary) sick pay providers. Despite a considerable degree of mistrust, mortgage‐related private sickness insurance mattered to some extent, although this does not necessarily reflect policyholders’ strategic choices vis à vis current household needs for income security. Other potential sources of income replacement, such as savings, are relied on much less. In general, the analysis shows a heavy middle‐class reliance on, and strong confidence in, employer‐based sickness pay. This finding may be contrasted with questions about the sustainability of voluntary corporate provision, as well as its capacity to provide income security for the workforce as a whole.