This marks a £130 million increase on the same period last year when IPT receipts came to £8.82 billion, contributing to a record annual total of £8.88 billion.
Following the latest OBR forecasts on the back of the Spring Statement, 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).
Cara Spinks, Head of Life & Health at Broadstone, said: “February’s figures reinforce the trajectory for IPT, with receipts continuing to build towards what looks set to be another record-breaking year. With £8.95 billion collected so far this financial year, the tax remains an increasingly significant contributor to Treasury revenues.
“Rising claims in workplace health benefits are a key driver behind this trend, set against sustained pressure on NHS capacity and persistently high waiting lists. Employers are increasingly relying on products such as private medical insurance and health cash plans to support staff, as long-term sickness and chronic health conditions continue to impact the workforce.
“These products can support productivity and retention by enabling earlier intervention, diagnosis and preventative care, while also helping to ease pressure on NHS services. The scale of the challenge is significant: recent data shows average sickness absence remains well above pre-pandemic levels, with more people seeking faster access to treatment through private cover.
“However, rising premiums and IPT are undermining affordability and limiting access at a time when these benefits are most needed. If the Government is serious about reducing economic inactivity and supporting growth, it should review the role of IPT on health insurance, including the potential for targeted exemptions. This would remove barriers to wider uptake, support employers to keep people in work, and align with the ambitions of the Keep Britain Working review.”
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