The self-employed sick-pay gap and the rise of Personal Sick Pay
Roughly one in seven UK workers is self-employed, and none of them get sick pay. That gap is driving a quiet shift in how cover is bought.
Employees have at least Statutory Sick Pay and often an occupational scheme. The self-employed have neither — if they cannot work, the income simply stops, usually from day one. For tradespeople, drivers, freelancers and contractors that is a stark exposure.
Personal Sick Pay plans have grown in popularity precisely because they are built for this. They allow very short waiting periods — in some cases a single day — so the benefit starts almost immediately rather than after months. That suits people who do not have a large savings buffer to ride out an injury.
The trade-off is cost: the shorter the wait, the higher the premium. The art is matching the deferred period to whatever cushion you do have, so you are not paying for cover you would never use.
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