Half of households with children `rely on two salaries`

49% of UK households with children are dependent on two salaries to cover their living costs, research by Scottish Widows has revealed.

Research carried out involving 5,148 UK adults also shows that many people are leaving themselves and their families at risk of financial problems if they lost their main income.

With the report indicating that only 7% of the population have income protection – and only 12% have critical illness cover – millions of households run the risk of not being able to cope financially if one of the main breadwinners becomes unable to work.

Mortgage holders could be even more vulnerable, with over half (51%) stating they were reliant on two salaries. Almost a quarter (23%) of families said they would cut back on general expenditure if they lost one income – but with 56% of those surveyed revealing that paying essential household bills was their main financial priority, a period of belt-tightening could hit families hard.

An expert from debt management company Gregory Pennington said: "Planning for the future is an important part of money management - and with so many UK families dependent on two incomes, it`s clear that many households could benefit from looking to protect themselves with life insurance and illness cover."