It follows the record 2025/26 financial year total of £9.04 billion revealed last month, exceeding the 2024/25 full year total of £8.88 billion by £157 million.
The Office for Budget Responsibility’s Spring Statement forecasts indicate that IPT is now expected to raise £57.8 billion between 2025/26 and 2030/31, marking a £500 million upgrade from estimates made after the Autumn Budget in November (£57.3 billion), as continued demand for health-related insurance products drive growth.
Cara Spinks, Head of Life & Health at Broadstone, commented: “IPT receipts have started the 2026/27 financial year more subdued after a record year in 2025/26. While this softer start is encouraging, demand for health-related insurance remains strong as both employers and individuals continue to seek quicker and more reliable access to healthcare amid ongoing pressures on the NHS. That sustained demand is also contributing to higher premiums across the market.”
“The Government’s recent announcement of reforms to the “fit note” system highlights just how closely health and work are now linked. The shift away from simply signing people off work towards more structured “return to work” support reflects a wider focus on keeping people in employment and reducing economic inactivity.
“While many employers continue to prioritise health cover as part of their workforce strategy, rising costs risk limiting accessibility at a time when interest in these products remains high. This is particularly relevant as policymakers look to improve workforce participation and reduce reliance on sickness absence.
“With IPT receipts expected to continue increasing, there is a broader question as to whether the current tax treatment of health insurance aligns with these policy objectives. Expanding access to preventative and early stage healthcare - particularly through employer provided cover - could play a meaningful role in supporting people to stay in, and return to, work, while also easing pressure on public services.”
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