Nearly five million renters in the UK have no plans in place to cover their rent if they became too ill to earn for three months or more, even though recent cuts to housing benefits could leave them at risk, according to results from a survey by YouGov, commissioned by Royal London.
This is despite the fact that 27% of renters in paid employment said they knew someone who had struggled in this situation.
34% of renters in paid employment admit they don’t know how long they could survive, and 60% who had some idea said they could only survive on their savings for three months or less. Their first port of call would be to apply for state benefits (53%), followed by reducing their household expenses (47%) and then dipping into their savings (39%).
Only 7% of renters in paid employment have ever consulted a financial adviser. The most common place people turn to for financial advice is their family and friends.
Debbie Kennedy, head of protection for Royal London Intermediary, said: “Renters who assume that housing benefit will be there when they need it could find the reality is very different. A series of cuts to housing benefit means that more people would not get their rent paid in full if their income fell unexpectedly.
“It would be bad enough to be taken ill without the added anxiety of getting behind with the rent and facing possible eviction. Income protection may be more affordable than people realise and can provide a financial safety net and enable people to focus on getting better.”