Would your household income still cover the mortgage
TF Financial Advisors | Information checked 5 October 2026
If you were unable to work for a few months, how would you cover the mortgage? For households in Tynemouth and Newcastle, the 2026 changes to Statutory Sick Pay make this a useful time to check the answer. Better access to sick pay does not necessarily mean enough income to maintain your usual household budget.
What changed in April 2026
From 6 April 2026, Statutory Sick Pay became payable from the first qualifying day of sickness, and the lower earnings limit was removed. For 2026/27, the weekly amount is £123.25 or 80% of average weekly earnings, whichever is lower, subject to eligibility. It can be paid for up to 28 weeks. [1, 2]
An employer may provide more generous contractual sick pay. Check your own terms: how long does full pay last, when does it reduce, and what happens after that? Someone with six months of full pay needs a different plan from someone who receives only the statutory amount.
Work out the gap in your household budget
As a simple illustration, £123.25 a week is approximately £534 a month when averaged over a year, before any applicable deductions. Against an illustrative £1,000 monthly mortgage, that leaves around £466 still to find, before food, council tax, utilities and other spending.
Your own position may be stronger because of a partner’s earnings, savings or workplace benefits. Write those figures down alongside your essential bills. Then look at how the picture changes after one month, three months and six months away from work.
How income protection can help
Income protection can replace part of your income if illness or injury prevents you from working, provided your claim meets the policy’s terms. Payments normally begin after an agreed waiting period. That delay can be chosen to fit around employer sick pay and accessible savings. [3]
Check how the policy defines being unable to work, its exclusions and how long each claim can be paid. Some policies limit payments to a set period; others can continue longer, subject to the terms. Income protection generally does not cover redundancy, so job loss needs separate consideration.
Life cover and critical illness cover do different jobs
Life insurance is designed to provide a payment if you die while covered. Depending on the policy, this could help your family repay a mortgage or meet living costs. It should not be assumed to cover ordinary periods of sickness. [4]
Critical illness cover can provide a lump sum if you meet the definition of a specified illness or condition. The conditions and severity requirements vary. Income protection instead focuses on the effect that illness or injury has on your ability to work. The right combination depends on your circumstances and budget. [3, 5]
Self employed or changing your mortgage
If you are self-employed in North Shields or Whitley Bay, do not assume employee sick-pay rules provide your safety net. Review what would happen to your personal income and which business expenses would continue if you stopped working. [3]
A mortgage renewal is also a good point to check existing cover. Has the mortgage payment increased? Has your term changed? Have you had children or changed jobs? Review what you already have before adding anything new, and keep existing cover in place until any replacement has been accepted and started.
TF Financial Advisors can help you review life insurance, critical illness cover and income protection across Whitley Bay, Tynemouth, North Shields and Newcastle. Call 0191 637 5028 or contact us to discuss the cover that fits your household.
Contact TF Financial Advisors | life insurance and protection
Cover is subject to underwriting, policy terms, exclusions and eligibility. Benefits are payable only where the claim meets the policy conditions. This article provides general information, not a personal recommendation.
Sources
1. GOV.UK April 2026 sick-pay changes
3. MoneyHelper income protection guide