For most homeowners, a mortgage is the biggest financial commitment they will ever make. It’s a long-term promise – one that provides security, stability, and a future for your family. But what happens if you suddenly can’t make your payments?
Many people assume that if the worst happens, the government will step in to help. The reality? State support is minimal, delayed, and, in some cases, simply another loan.
The question isn’t whether financial risks exist – it’s whether you are prepared for them.
The Harsh Truth: What Government Support Really Looks Like
If you lost your income due to illness or redundancy, you might expect financial help. But as the figures below show, state support falls far short of what’s needed to cover mortgage repayments.
| Benefit | Reason | Eligibility | How Much is Paid? | For How Long? |
| Statutory Sick Pay (SSP)1 | Illness preventing work | Employed only | £116.75 per week (Current rate) | Up to 28 weeks |
| Employment and Support Allowance (ESA)2 | Illness or disability preventing work | Employed & self-employed | Up to £90.50 per week (after assessment) | Ongoing (depends on severity) |
| Statutory Redundancy Pay3 | Being made redundant | Employees with 2+ years’ service | Based on age & length of service | One-off payment |
| Universal Credit4 | Low income or unemployment | Subject to means testing | Varies | Ongoing |
| Support for Mortgage Interest (SMI)5 | Struggling with mortgage repayments | Must own a home/shared ownership property and receive selected benefits5 | Loan covering interest only (not capital repayments) | Loan repayable when property is sold |
When the average UK mortgage repayment is now over £1,400 per month6, it’s clear that government benefits simply don’t go far enough.
Why Government Support is Insufficient
1. Payments Are Too Low
- Statutory Sick Pay (SSP) is currently just £116.75 per week—or £467 per month. That barely covers food, let alone a mortgage.1
- Even if you qualify for Employment and Support Allowance (ESA), you’ll receive a maximum of £90.50 per week (or £138.20 if part of a support group).2
- Universal Credit varies based on income and savings, meaning many homeowners won’t receive enough—or anything at all.4
2. The Waiting Period is Too Long
Even if you do qualify, help doesn’t arrive immediately.
- Universal Credit can take at least five weeks to process—by then, you could already be in arrears.4
- Support for Mortgage Interest (SMI) requires you to be on benefits for several months before it kicks in.5
If you don’t have a financial backup, your mortgage lender won’t wait for government payments.
3. SMI is a Loan – Not Free Money
Many assume Support for Mortgage Interest (SMI) is a grant. It isn’t.
- SMI only covers interest—not the mortgage itself.5
- It’s a loan that must be repaid when you sell your home.
- It adds to your debt, rather than reducing it.
If you’re already in financial trouble, taking on another loan won’t help.
4. Redundancy Pay Won’t Last
Statutory Redundancy Pay is capped and based on length of service3. Even if you receive a lump sum, it’s often not enough to cover mortgage repayments for more than a few months.
If you’re out of work for longer, you need another plan.
5. No Support for the Self-Employed
If you’re self-employed, your safety net is even thinner.
- Self-employed workers don’t qualify for Statutory Sick Pay.1
- ESA and Universal Credit exist, but they are means-tested and payouts are low.2,4
If your business slows down or you can’t work, you’ll have to rely on savings or personal protection.
How to Actually Protect Your Home
The government won’t save you if you can’t pay your mortgage. That’s why every homeowner must take responsibility for their own financial security.
1. Income Protection Insurance: Replacing Your Salary When You Can’t Work
If you became too ill or injured to work, how would you pay your mortgage?
Income Protection Insurance replaces a portion of your salary—typically 50-70% of your pre-tax income—until you can return to work7.
- Covers short-term illness or injury.
- Pays out much more than Statutory Sick Pay.
- Kicks in as early as four weeks after you stop working.
Unlike state benefits, this ensures you can continue to meet your mortgage payments without financial stress.
2. Critical Illness Cover: A Financial Lifeline for Serious Illness
What if you were diagnosed with cancer, suffered a stroke, or had a heart attack?
Critical Illness Cover provides a tax-free lump sum payout if you develop a serious medical condition covered by your policy8.
- Pays out quickly, ensuring financial security.
- Covers long-term conditions that prevent you from working.
- Can be used to clear your mortgage, cover bills, or pay for medical treatment.
Many homeowners assume they’ll always be able to work—but serious illness can happen to anyone.
3. Life Insurance: Protecting Your Family’s Future
Would your family be able to keep your home if you passed away?
Life Insurance ensures that your mortgage is paid off, so your loved ones aren’t left struggling.9
- Pays out a lump sum to clear your mortgage debt.
- Prevents forced sales or repossession.
- Can be set up as a joint policy to protect both partners.
For families, this is one of the most important protections you can have.
4. Putting Life Insurance in Trust: Ensuring Fast Payouts
Many people don’t realise that life insurance payouts can be delayed by probate—sometimes for months.
By putting your life insurance in trust10, you:
- Ensure a faster payout to your family.
- Keep the money separate from inheritance tax.
- Decide exactly who receives the funds and when.
This simple step ensures your loved ones get financial support when they need it most.
5. Writing a Will: Securing Your Home for Your Family
If you die without a will, your estate may not go to the people you intended11.
- If you’re unmarried, your partner may have no legal right to your home.
- The probate process can be delayed for months or even years.
- Without proper estate planning, inheritance tax could eat into your assets.
A legally valid will ensures your home and finances go to the right people.
Final Thoughts: Don’t Leave It to Chance
The truth is, government support won’t save your home.
- State benefits are too low.
- Help takes too long to arrive.
- Most schemes don’t cover your full mortgage.
That’s why every homeowner needs a personal safety net.
Take Action Today
- Check your financial protection—do you have a plan in place?
- Review your mortgage and savings—can you handle an income shock?
- Speak to a mortgage and protection adviser—ensure you have the right cover.
If you’re unsure whether your home and family are financially secure, get in touch today for a free consultation.
Because when life throws the unexpected your way, the right protection is the difference between keeping your home and losing it.
Sources
- Gov.uk (2025) Statutory Sick Pay. Available at: https://www.gov.uk/statutory-sick-pay [Accessed 20th Feb 2025]
- Gov.uk (2025) Employment Support Allowance. Available at: https://www.gov.uk/employment-support-allowance [Accessed 20th Feb 2025]
- Gov.uk (2025) Redundancy: your rights. Available at: https://www.gov.uk/redundancy-your-rights/redundancy-pay [Accessed 20th Feb 2025]
- Gov.uk (2025) Universal Credit. Available at: https://www.gov.uk/universal-credit [Accessed 20th Feb 2025]
- Gov.uk (2025) Support for Mortgage Interest (SMI). Available at: https://www.gov.uk/support-for-mortgage-interest [Accessed 20th Feb 2025]
- Unbiased (2025) What is the average monthly mortgage payment in the UK?. Available at: https://www.unbiased.co.uk/discover/mortgages-property/buying-a-home/what-is-the-average-monthly-mortgage-payment-in-the-uk [Accessed 20th Feb 2025]
- Citizens Advice (2025) Income protection insurance. Available at: https://www.citizensadvice.org.uk/consumer/insurance/types-of-insurance/income-protection-insurance/ [Accessed 20th Feb 2025]
- Citizens Advice (2025) Critical illness insurance. Available at: https://www.citizensadvice.org.uk/consumer/insurance/types-of-insurance/what-critical-illness-insurance-is/ [Accessed 20th Feb 2025]
- Moneyhelper (2025) What is life insurance? https://www.moneyhelper.org.uk/en/everyday-money/insurance/what-is-life-insurance [Accessed 20th Feb 2025]
- Which? (2024) How to write life insurance in trust. Available at: https://www.which.co.uk/money/insurance/life-insurance-and-protection/how-to-write-life-insurance-in-trust-ancNf5h4ygvJ [Accessed 20th Feb 2025]
- Citizens Advice (2025) Making a will. Available at: https://www.citizensadvice.org.uk/family/death-and-wills/wills/ [Accessed 20th Feb 2025]
All the information in this article is correct as of the publish date 27th February 2025. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content, and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.
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