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With one million people in the UK finding themselves unable to work due to prolonged sickness or injury every year, the Association of British Insurers (ABI) has rolled out an online tool that calculates workers’ likely financial entitlements in such cases.
‘Percy, the Protection Calculator’ is designed to provide consumers an accurate estimation of likely monthly income based on information provided by the user as well as the government’s benefit data. The calculator, which is still in development, aims to shine a spotlight on income gap.
Meanwhile the ABI stressed that Percy’s sole purpose will be to raise awareness and that details from users – who won’t be required to disclose their name when accessing the calculator – will never be stored.
Entitlements under Universal Credit vary depending on personal circumstances such as marital status and level of savings.
“Our vision for the creation of Percy is to provide a calculator that gives people the information they need in order to plan their finances and prepare for any unexpected income shocks in the future,” said ABI protection and health head Roshani Hewa.
The Single Financial Guidance Body welcomed the initiative, with proposition manager Michael Royce saying the calculator will help people in taking action to build up their financial resilience.
“We hope that employers will look to signpost their staff to the calculator and, at the same time, take the opportunity to alert them to their own policies on sick pay, which research suggests many employees are unaware of,” he said.
A beta version of the calculator is available on ABI’s website.
“We know that Percy isn’t perfect just yet, which is why we’re so keen for users to engage in its development,” added Hewa. “We’ll be working tirelessly towards its full launch later this year, and hope that in the meantime it provides invaluable information to boost people’s financial awareness.”
