"Health and wellbeing support has never mattered more in the workplace."
- Dave Capper - Westfield Health
Chancellor John Healey delivered the 2026 Budget to the House of Commons yesterday, the first since Andy Burnham became Prime Minister and Healey's first Budget as Chancellor.
While the new measures included changes designed to ease the strain on carers and the NHS, the Budget remained quiet on issues such as insurance premium tax (IPT) rates.
Jamie Page, head of distribution at The Exeter, called the decision to keep IPT at its current rates "a pragmatic and welcome move by the Chancellor."
"The cost of living is a daily challenge for families and businesses alike, so any further increase to IPT would have directly inflated the cost of some important insurance products.
"Increasing the tax burden would only penalise those proactively looking for peace of mind and protecting themselves from unexpected financial shocks. By resisting a further hike, the Chancellor has protected consumer wallets and supported businesses in maintaining vital employee benefits.
"While the industry will continue to make the case for a long-term reduction in IPT, holding rates steady is a positive step that helps keep crucial cover within reach for millions across the UK."
However, Cara Spinks, head of life & health at Broadstone, said that "while the Chancellor has spoken about easing pressure on the NHS and supporting people to remain in work," the Budget also "missed an opportunity to use the tax system to encourage greater investment in employee health and wellbeing.
"Insurance premium tax continues to generate significant revenues for the Treasury, but it also increases the cost of health insurance and health cash plans for employers and individuals."
READ MORE: Consumer Duty should prevail when assessing the outcomes of the FCA's protection market study
"At a time when the government is rightly focused on reducing economic inactivity and improving access to healthcare, it is worth considering whether this remains the right approach.
"Workplace health benefits can play an important role in helping people access diagnosis, treatment and preventative support more quickly, reducing the impact of ill-health on individuals, employers and the wider economy.
"This is particularly relevant for smaller businesses, where affordability can be a key barrier to providing these benefits.
"If the government wants employers to play a greater role in supporting workforce health, targeted tax incentives which encourage investment in healthcare benefits could help improve access to care, support productivity and complement the NHS rather than competing with it."
Meanwhile, Dave Capper, CEO at Westfield Health, commented: "Health and wellbeing support has never mattered more in the workplace. Our Annual Workplace Wellbeing Survey found 63% of people who left work through ill health believe the right support could have kept them in work.
"Health insurance and cash plans are often how employers give their people that support, quickly, when they need it.
He added that the 2026 Budget "does little to ease the squeeze businesses are feeling. Employers have absorbed higher National Insurance, a rising wage floor and day-one sick pay, and many are making difficult decisions about where their money goes. Brokers are having those conversations with clients every day.
"Health support shouldn’t be the thing that gets cut. It’s what keeps people well, in work and productive. We’d like to see the government recognise that and make it easier for employers to keep investing in their people."
