Income protection vs Statutory Sick Pay (UK 2026)
Statutory Sick Pay (SSP) is a limited safety net — in the 2026/27 tax year it pays up to £123.25 a week (or 80% of average weekly earnings if lower) for a maximum of 28 weeks, and only to eligible employees. Income protection is a personal policy that can replace a much larger share of your income for far longer. This page compares the two so you can see the gap one leaves and the other is designed to fill.
The short version
- SSP (2026/27): up to £123.25 a week, or 80% of average weekly earnings if that is lower, for a maximum of 28 weeks — paid by your employer.
- Income protection: a percentage of your own income (commonly around 50–65% of gross earnings), paid tax-free, potentially up to retirement.
- The gap: SSP rarely matches your normal take-home pay and runs out after 28 weeks; income protection is built to bridge that shortfall.
- Self-employed: there is no SSP at all if you work for yourself, which is why many sole traders rely on income protection instead.
Statutory Sick Pay vs income protection
| Statutory Sick Pay | Income protection | |
|---|---|---|
| Who pays it | Your employer, under statutory rules | An insurer, under a policy you arrange and pay for |
| How much | Up to £123.25 a week in 2026/27 (or 80% of average weekly earnings if lower) | A percentage of your income you choose — commonly around 50–65% of gross earnings, paid tax-free |
| How long it lasts | A maximum of 28 weeks per period of sickness | For the deferred period you choose until you recover, or potentially to retirement on full-term cover |
| Eligibility | Eligible employees only; from 6 April 2026 it is paid from the first qualifying day and the lower-earnings limit is removed | Anyone accepted at underwriting — priced on age, occupation, health and the options chosen |
| Employees | Provides a basic floor while employed | Tops up above SSP and continues after SSP ends |
| Self-employed | Not available — there is no employer to pay it | Often the main source of cover, as no SSP applies |
SSP figures reflect the 2026/27 tax year (gov.uk). Income protection details are indicative for orientation only — not a quote. Actual cover and premiums are set by each insurer’s underwriting.
The gap Statutory Sick Pay leaves
For most households, £123.25 a week is well below normal take-home pay. SSP was designed as a minimum floor, not a replacement for your salary, so even while it is being paid there is usually a sizeable gap between SSP and the income you actually live on. Mortgage or rent, bills and everyday costs continue at their normal level, which is where the shortfall bites.
Income protection is built to close that gap. Because the benefit is set as a percentage of your earnings rather than a flat statutory amount, it can replace a far larger share of your income and is paid tax-free. You choose a deferred period — the wait before payments begin — and a common approach is to align it with however long SSP and any savings would realistically last. See the income protection hub for how the cover is structured.
What happens after SSP ends
SSP stops after a maximum of 28 weeks. If you are still unable to work at that point, your employer is under no obligation to continue paying it, and you may be directed towards other support such as Universal Credit or Employment and Support Allowance — means-tested benefits that are typically far below a working income.
This is the point an income protection policy is designed for. Full-term cover can keep paying a benefit right up to your chosen retirement age for a single illness, while short-term (budget) cover pays for a capped period per claim at a lower premium. Either way, the policy continues precisely when the statutory safety net has run out. It sits alongside life insurance, which pays a lump sum on death rather than a monthly income while you are alive but unable to work.
If you’re self-employed, there is no SSP
Statutory Sick Pay only exists through an employer, so if you are self-employed it is not available to you at all — there is no statutory floor to fall back on, and an illness that stops you working can stop your income immediately. For many sole traders and contractors, income protection is therefore not a top-up but the primary safety net.
Without any sick pay to bridge the wait, self-employed people often choose a shorter deferred period and full-term cover, and insurers will usually verify income from trading accounts or tax returns. The income protection hub explains how to size the benefit and the deferred period when there is no employer cover behind you.
Income protection vs SSP FAQs
Information only — not financial advice. My Insurance Expert is not an FCA-authorised intermediary and does not arrange or sell policies. SSP figures reflect the 2026/27 tax year and may change; check gov.uk for the current position. Last updated: 2026-06-13