General Insurance Article - IPT generated £6.8 billion in the first 9 months of 2025/26

It comes after a new ABI report published yesterday found that insurers process record £4bn across individual and workplace health schemes in 2024 – up 13% compared to 2023 (£3.57bn). That is roughly £11 million paid out every single day across the year. 

 

The Office for Budget Responsibility’s Autumn Budget projections suggest that IPT receipts for 2025/26 are on course to reach £8.97 billion, rising further to £10.1 billion by 2030/31 as underlying demand for health-related insurance products continues to grow.

 

Commenting on the figures, Cara Spinks, Head of Life & Health at Broadstone, said: “With three months remaining in the financial year, December’s IPT intake reinforces that this tax shows no signs of easing as the year-to-date total climbs to £6.8 billion. Workplace health insurance claims continue to rise, and employers are increasingly turning to PMI and Health Cash Plans to manage the productivity drain caused by long-term sickness and ongoing NHS access challenges.

 

“The UK’s persistent ill-health burden is acting as a drag on economic growth, and employers are increasingly being left to shoulder the consequences. Health insurance products play a critical role in keeping people in work by enabling early intervention, diagnosis and preventative care - while also alleviating pressure on the NHS.

 

“With IPT continuing to generate record sums and acting as a barrier to wider uptake of these essential benefits, the Government needs to reassess the role of IPT on health insurance and consider an exemption to support workforce participation and NHS resilience. This would empower employers to provide the support needed to help deliver on the aims of the Keep Britain Working review and underpin the UK’s broader growth ambitions.”