Income protection and your mortgage are closely linked, even though one is insurance and the other is a loan. Income protection pays you a monthly income if illness or injury stops you working, and for most homeowners the first bill that money needs to cover is the mortgage. Your lender will still expect a payment on the same date each month, even when you are off sick.

This guide covers what sick pay gives you in 2026, how income protection fits around it and what to consider if you work for yourself. It is general guidance, not personal advice.

What happens to your mortgage if you can’t work?

If you cannot work, your mortgage payments are still due in full. Lenders do not pause payments because you are ill, and missed payments are recorded on your credit file. Lenders will discuss short-term options if you contact them early, but these usually add to what you owe. The real question is how long your savings and sick pay would last.

How much is Statutory Sick Pay in 2026?

Statutory Sick Pay (SSP) is £123.25 a week, paid by your employer for up to 28 weeks, according to GOV.UK (checked October 2026). If 80% of your normal weekly earnings is lower than that flat rate, you receive the lower figure instead.

Two rules changed from 6 April 2026 under the Employment Rights Act. SSP is now paid from the first full day of sickness rather than the fourth, and the lower earnings limit has gone, so lower-paid employees who used to miss out are now eligible. Even so, £123.25 a week works out at roughly £534 a month, which will not stretch far once the mortgage, council tax and energy bills are due.

Does employer sick pay change the picture?

Many employers pay more than SSP for a set period, often full pay and then half pay, before dropping back to SSP. Check your contract or staff handbook now, because the date your sick pay steps down is when the gap opens up, and when income protection needs to start paying.

What is a deferred period in income protection?

The deferred period is how long you must be off work before an income protection policy starts paying. Common choices include 4, 8, 13, 26 and 52 weeks. A longer deferred period usually means a lower premium, because the insurer is less likely to pay out.

The sensible approach is to line it up with your other support. If your employer pays full salary for six months, a 26-week deferred period may suit. If you would be on SSP from day one with little in savings, a shorter one is worth considering.

How is income protection different from critical illness cover?

Income protection pays a regular monthly benefit while you are unable to work because of illness or injury, until you return to work or the benefit period or policy ends. Critical illness cover pays a one-off lump sum if you are diagnosed with one of the specific conditions listed in the policy.

Back problems and mental health conditions are common reasons for long absences and are not usually on a critical illness list, but income protection may cover them, subject to the policy terms. Our earlier guide, Critical Illness Cover Explained, covers the lump sum side in more detail.

What if you’re self-employed?

If you are self-employed, there is no Statutory Sick Pay, because SSP is only paid to employees. For a sole trader, income can stop the day you stop working, while the mortgage, van finance and business costs carry on.

Across Torbay and South Devon, where so many people run trades, guest houses and seasonal businesses, a broken wrist in June can cost a decorator or holiday let cleaner their busiest months. Cover for self-employed people is usually based on the earnings in your tax returns.

Income protection and your mortgage: how much cover to consider

Insurers cap the monthly benefit at a proportion of your earnings, and the limit varies between insurers. Within that, a practical starting point is your essential monthly outgoings, such as the mortgage, council tax, utilities, food and travel, minus any income that would carry on, like a partner’s salary.

You also choose how long each claim can pay. Some policies pay until you return to work or the policy ends, while others limit each claim to a set period, such as two years, which costs less. Premiums can be fixed or reviewable, so check which you are offered.

Frequently asked questions

Does income protection pay my mortgage directly?

No. Income protection pays the benefit to you, and you decide how to use it, usually to keep the mortgage and household bills up to date.

Is mortgage payment protection the same as income protection?

No. Mortgage payment protection is designed to cover the mortgage payment itself, usually for a limited period. Income protection replaces part of your wider income and can often pay for longer, depending on the policy.

Can I get income protection if I work for myself?

Yes, and it often matters more for self-employed people because there is no Statutory Sick Pay. Cover is usually based on your declared earnings.

Call Riviera Mortgages on 01803 500190 to talk through income protection alongside your mortgage with one of our advisers.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.