Financial issues you may face if you have cancer

Taking time off sick Back to top

During treatment some people may try to continue to work, but may need to take a few days or weeks off. This may be as one period of sick leave, or could be a few days every month for a period of time.

Some people choose or need to stop working throughout their treatment, which could be a period of weeks, months or even years. When deciding whether you want to carry on working or whether you would like to take the whole time off sick, you may like to think about the issues below and also the financial considerations| .

It may help to contact an independent financial adviser (IFA) to get advice on your financial options. IFAs can assess your individual situation and recommend the best course of action.

You can find a local IFA by referral from family or friends, looking in your phone book, or by contacting IFA Promotions or the Personal Finance Society| .

If you have any private insurance cover for income replacement, life insurance, loan or mortgage protection or critical illness cover, you should speak to your insurance company or financial adviser as soon as possible.

You can get advice from your insurer or financial adviser about any conditions which apply to your life insurance or pension plans, such as being able to take a break from payments or a waiver of premium. A waiver of premium benefit means that the insurance company will pay the premium for you for a set period of time (for example, until you are fit to work or until the end of the policy).

Sick pay

All employees who earn enough money to pay national insurance contributions are eligible to receive Statutory Sick Pay (SSP) if they are off sick for more than four days (including the weekend), for a maximum period of 28 weeks.

To claim SSP, you must tell your employer that you are sick no later then seven days after you first become ill. The payment is made by the employer on behalf of the government. The employer claims a contribution towards the payment, which is deducted from the payment of national insurance contributions.

Some companies pay more than the basic rate of statutory sick pay and this is known as contractual or occupational sick pay. This will be detailed in your contract of employment/staff handbook or you could ask your human resources department for further information.

Occupational sick pay is usually paid as a top up to SSP (ie you don’t get both: SSP is a part of your occupational sick pay).

SSP starts when you have been off work for four days and continues until you either return to or leave work, or until the end of the 28-week period. At the end of the 28-week period, your employer should then complete a form SSP1 (Statutory Sick Pay Leavers Statement) and give it to you. This will explain that your SSP is finishing and tell you where to get further help and advice about benefits.

Periods of SSP payment linked by less than eight weeks (56 days) are considered to be the same period of absence – in other words you need to be back at work for over eight weeks before you can claim again for the full 28 weeks of SSP.

Sick certificate

If you are ill and not able to work for more than a few days, remember to ask your GP for a medical certificate to cover the period of your illness. If you are in hospital, ask your doctor or nurse for a certificate to cover the time that you are an inpatient. This will be necessary if you need to claim a benefit. You may need to take a medical test to assess if you are eligible to claim.

Benefits

If you are still unable to work after receiving SSP for 28 weeks, or your contract ends before that time and you are still unable to work, you may be able to claim Employment and Support Allowance (ESA). This is a new benefit which replaces Incapacity Benefit.

There are two parts to ESA: a contributory part which is dependent on how much National Insurance you have paid, and a means tested part which is dependent on your income and savings. You may get either or both parts.

Usually, ESA is paid at a basic rate for the first 13 weeks. This is the assessment phase. During this time you may need to complete a questionnaire or attend a medical assessment. After the 13-week period you will be assessed and placed into one of two groups: the support group or the work-related activity group.

If you are found to have limited capability for work you will be placed in the support group. An additional payment will be paid to anyone in the support group. If you are found not to have limited capability for work you will be placed in the work-related activity group. A small additional payment will be paid to anyone in this group. You will have to attend five more work- focused interviews. The interviews are to help you get back into work.

If you are self-employed you are entitled to claim ESA as long as you have paid the correct level of National Insurance contributions. People who have not paid the relevant National Insurance contributions may qualify for ESA under the means-tested route.

If you need help with personal care, you may qualify for Disability Living Allowance (DLA) if you are under 65 or for Attendance Allowance (AA) if you are over 65. People under 65 can also claim DLA if they have mobility problems. Ask your local Department for Work and Pensions office for claim forms or call the Benefit Enquiry Line on 0800 882200.

There is a fast-track claim for people who may not live longer than six months. People who claim under these ‘special rules’ need to get their doctor to complete a form for either benefit. It’s impossible to tell exactly how long someone may live and many people with advanced cancer may be entitled to this benefit. Special rules payments of AA and the DLA care component are reviewed after three years.

If you have a dispute over a benefit claim, a specialist welfare rights solicitor can advise you – the Legal Services Commission| can give you details of specialist solicitors. You could also contact your local Law Centre or Citizens Advice Bureau| .

Disability/life assurance and occupational pensions

All life assurance, critical illness insurance and occupational pension schemes have different rules and operate in different ways. It’s important to get independent financial advice to find out about the policies you may have and the best thing to do in your situation. For example, you may want to use a payout from an insurance claim or from severance of your employment to pay a lump sum off your mortgage.

Life assurance policies

If you have an existing life insurance policy and can’t continue to pay your premiums you can find out if a waiver of premium applies to the plan. This means the insurance company will pay the policy premium for you, for a time, if you are ill and unable to work. Different companies have different policies and the time they will pay the premiums may vary.

If you need money urgently, you could talk to an independent financial adviser about your options. For example, you may be able to take out a loan against your life insurance policy, sell the policy or surrender the policy.

However, you may find it impossible to take out a new life insurance policy for a few years after you have had cancer, so bear this in mind when planning your finances.

Occupational pensions

If you are paying into an occupational pension scheme, or are considering paying into one, make sure you have full information about the scheme. Your human resources manager, trade union representative or pension scheme’s trustees will be able to help.

You have the right to leave or decide not to join a scheme, but always consider the implications carefully and take advice from an independent financial adviser before you make a decision.

If you leave one job to go to another, there are several ways your pension rights may be dealt with. Find out what your options are from your new employer. You may want to discuss it with an independent financial adviser.

If you’ve had a temporary interruption of work due to sickness, find out how this affects your pension. There can be variations in the conditions which might affect your pension entitlement.

Information about financial issues Back to top

For further detailed information on benefits and financial support please contact us| .

You can also find out more about benefits from your local Citizens Advice Bureau or Social Security office. You will usually need to make an appointment. Their addresses and telephone numbers are in the phone book. You can also get information from the Benefit Enquiry Line on 0800 882200 or the Department for Work and Pensions website at www.dwp.gov.uk|

The Benefit Enquiry Line has some advisers who speak other languages and can also arrange to give its information through interpreters. Benefit information in other languages is available on the Department for Work and Pensions website at www.dwp.gov.uk/otherlanguages|

The hospital social worker can give you advice on sources of financial help.

 

Remember that a change in your circumstances (such as a reduction or increase in your salary or in the number of hours you work) can mean you’re entitled to more or less benefit. You need to find out in detail the regulations and conditions that apply to your benefits.