General Insurance Article - IPT receipts hit £5.52bn exposing a growing contradiction

It marks an increase of £68 million on the same period through the previous Financial Year (£5.45 billion in 2024/25) which went on to collect an all-time high tax take of £8.88 billion.

 

Cara Spinks, Head of Life and Health, Broadstone, said: “With the Autumn Budget just days away, HMRC’s latest figures showing Insurance Premium Tax (IPT) receipts of £5.52 billion expose a growing contradiction. Since the pandemic, products like Private Medical Insurance and health cash plans have been critical in keeping the UK workforce healthy and easing pressure on the NHS – a cornerstone for driving economic growth. Yet, with waiting lists still at record highs, IPT acts as a barrier to uptake for both employers and employees. It risks stalling the progress made in reducing NHS backlogs and undermines the Government’s growth ambitions.

 

“The Chancellor has an opportunity next week to fix this. Removing IPT from health insurance would more than pay for itself through improved health outcomes and productivity. The Government’s own ‘Keep Britain Working’ report underlined the importance of workplace health and reinforces the message that healthier workforces are strongly linked to improved outcomes for employers, individuals and the government alike. The Budget is the perfect moment to turn words into action by removing IPT from private healthcare cover.”