This represents a £134 million increase on the same period last year, when IPT receipts for the first ten months of 2024/25 came to £7.56 billion, contributing to a record annual total of £8.88 billion. The Office for Budget Responsibility’s Autumn Budget forecasts indicate that IPT receipts remain on track to reach £8.97 billion in 2025/26, rising to £10.1 billion by 2030/31, with continued demand for health-related insurance products contributing to this growth.
Commenting on the latest figures, Cara Spinks, Head of Life & Health Broadstone, said: “With only two months of the financial year remaining, IPT receipts are expected to reach yet another record high, with January’s record figure pushing the year-to-date total to £7.7 billion.
“Claims across workplace health insurance continue to rise, and more employers are turning to health insurance products such as private medical insurance (PMI) and Health Cash Plans to support their workforces amid the growing impact of chronic sickness.
“The pressure of poor employee health on employers remains significant. According to the CIPD, employees were off sick for an average of 9.4 days in the past year, a significant increase from the pre-pandemic average of 5.8 days. At the same time, NHS pressures continue to shape employer behaviour, with PMI covering approximately 7.6 million people in the UK as more individuals seek faster diagnosis and treatment.
“IPT reduces the affordability of health insurance products and is increasingly regarded as a barrier to wider adoption of these essential benefits by employers and individuals. The Government ought to review the tax’s impact on health insurance and consider introducing an exemption. Doing so would support employers in delivering the ambitions of the Keep Britain Working review and help ease some of the workforce pressures constraining UK productivity.
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