Cash point

Nine out of 10 self-employed people don’t have critical illness cover and risk financial ruin should they become too ill to work.

Research from Scottish Widows shows half lack any sort of financial safety net, such as back-up savings, should they have to take long-term sickness leave.

That is despite working-age benefits like statutory sick pay not being available to the self-employed.

Almost half say their household relies on their income alone, more than a fifth have a mortgage and over a third have dependent children.

Jackie Leiper, protection director at Scottish Widows, said: “Selfemployed workers put immeasurable amounts of time and money into getting their businesses off the ground, but our research reveals they’re failing to protect their greatest asset – themselves.

“It’s particularly concerning when you consider this workforce has a more limited range of work-age welfare benefits.”

No one wants to think about ill-health, but it is vital we ensure we have our finances covered in case we can’t work. Critical illness cover can give peace of mind and is optional. Having savings of at least six months worth of our regular bills put aside is what everyone should aim for.

Royal Bank of Scotland could still face action from the Financial Conduct Authority over its treatment of small businesses.

The FCA said yesterday that it had identified a number of failings as part of an interim report into RBS’s handling of its SME (small and medium-sized enterprise) clients – mainly around supporting them in times of stress. But it said that it had not systematically treated its customers inappropriately.

RBS has faced claims that its Global Restructuring Group, intentionally pushed businesses towards failure in the hope of picking up their assets on the cheap.

FCA boss Andrew Bailey, said: “While the most serious allegations were not upheld, we are focusing on whether there is any basis for further action within our powers.”