CashNews.co
Families face financial vulnerability when facing sudden childcare needs due to illness or accidents.
Research from protection and employee benefits provider MetLife UK found that a staggering 79% of parents would experience financial strain if they were suddenly faced with unexpected childcare costs, with a quarter of working parents worried about the impact of taking time off work to care for a sick child.
When parents have a poorly child that requires them to take time off work or be away from their own business, things become more challenging. The financial impact can be significant, especially for those without savings or any financial protection to fall back on, should they have to take unpaid leave.
Our research asked parents how they would feel about caring for a child in their current financial position.
One-third of mothers surveyed said they’d feel stress and would likely experience sleepless nights.
A quarter of fathers said they would probably feel depressed about trying to take care of their child and their finances.
Parents also worried about deciding who should take time off work and how it would affect their individual responsibilities, workload and even job security.
A blow to working parents’ finances
Most respondents indicated they would need to make immediate adjustments to their daily lives to cover the additional costs of unpaid time off work to care for their child.
A quarter of those surveyed said they would need to tap into savings. A similar number said they’d need to reduce luxury spending, while 16% would have to cut back on groceries and other shopping.
Respondents also said they would cut costs by pausing household subscriptions or extracurricular activities or clubs. Meanwhile, 13% would need to ask family members for financial help.
Alarmingly, 48% of those surveyed admitted they had no savings set aside for such emergencies, 11% said they would need to borrow money to make ends meet and 5% fear they might have to miss a mortgage or rent payment.
A lifeline for families
There is a proposition that can help working parents and their families when they’re faced with unexpected childcare costs – ChildShield by MetLife UK.
This financial protection policy, starting at £6 a month, is specifically designed to support families if a child has an accident or becomes seriously ill.
Policyholders and their families also have access to GP24, a virtual GP appointment service offering unlimited consultations with UK-based remote GPs. This is available 24/7, 365 days a year.
ChildShield is unique in covering all children in a family until they turn 23, including stepchildren and children who no longer live in the same household.
Ultimately, we want parents to focus on their child’s recovery, knowing they have the support they need to manage the financial impact.
Find out more about ChildShield here.
