- The ABI has called on the Government to cut the rate of IPT on health insurance to make it easier for employers and individuals to purchase it and help people return to the workplace.
- New research reveals that seven out of ten people (69%) would consider using independent healthcare if it was offered as an employee benefit.*
Ahead of the Spring Budget, the Association of British Insurers (ABI) has called on the Government to cut the rate of Insurance Premium Tax (IPT) on health insurance.
Ill health is increasingly responsible for people leaving the workforce, and take-up of health insurance has been hampered by significant cost barriers including high taxation. The ABI has said that reducing the 12% IPT levied on health insurance premiums will encourage more employers and individuals to purchase the product, support more people back into the workplace, and ease the pressure on the NHS.
Research commissioned by the ABI from Public First has found that 69% of people would use health insurance if it was offered as an employee benefit. This would mean that seven in ten people would have prompt access to services and treatment which can stop health conditions from worsening and get them back to health more quickly. The sector’s unique focus on prevention and supporting people to live healthier lifestyles can also help boost the health of the nation.
The ABI’s research also found that 75% of respondents view the NHS as one of Britain’s proudest achievements, but 55% thought the quality of the NHS was one of the most important issues facing the country, second only to the cost-of-living crisis (74%). The majority of respondents also agreed that each person in the independent system is one less for the NHS to care for. Therefore, removing the barriers to health insurance will enable employers to play an even greater role in tackling ill health, supporting the NHS and creating a sustainable healthcare system for all.
Yvonne Braun, Director of Health and Protection Policy, ABI, said: “Insurers have a significant part to play in preventing ill health, supporting a healthy workforce and reducing pressure on the NHS. The independent sector’s strengths in early intervention and speedy diagnosis and treatment can also help keep people in the workplace, which is vital for boosting the economy.
“By cutting Insurance Premium Tax for health insurance, the Government could reduce the barriers that prevent it from being taken out, harness the potential of the independent health sector, and help tackle economic inactivity and pressures on the NHS.”
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Notes to Editors
*Public First conducted a nationally representative poll of over 2,000 UK adults between 26th-30th January 2023.
For more information please contact ABI Press Office.