Life - Articles - Insurance Premium Tax receipts in April hit GBP615 million


After a record £8.1 billion IPT collections last year, 2024/25 began quickly with total IPT receipts reaching £615 million in April 2024, 12% higher than April 2023 (£548 million), and marking the highest total receipts recorded for this period.

 Cara Spinks, Head of Insurance Consulting at leading actuarial consultancy OAC, said: “Despite a general cooling in premium inflation, demand for health insurance remains high as current NHS pressures and waiting lists mean private healthcare is an increasingly attractive option for individuals, and for employers wanting to maintain a healthy and active workforce.
 
 “Employers are increasingly stepping in to fill the healthcare gap, offering their employees a range of tailored health insurance products such as PMI and health cash plans in order to protect the health and wellbeing of their staff.
 
 “However, health conditions appear to be getting more complex, and ultimately more expensive to treat, which in part is driven by delays in early diagnosis and preventative treatment. This means that claim costs are rising and placing upward pressure on health insurance premiums.
 
 “With the OBR forecasting IPT receipts to grow to £8.8bn by 2028/29 and no sign of relief for the NHS, costs in the health insurance market are likely to remain high – even with UK inflation returning to pre-pandemic levels.
 
 “We would strongly urge the government to consider the importance of employers and individuals being able to access affordable and flexible health insurance products and the wider benefit it can have on the economy and the NHS. Alleviating or removing IPT on health insurance products would be a sensible, strategic move to help employers and employees be productive and successful, reducing sickness related absenteeism and relaxing the burden on the NHS.”
  

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