Affordable health and wellbeing options take priority due to National Insurance hikes
National Insurance increases and employee salary increases out-rank NHS waitlists for the first time when considering need for workplace health and wellbeing provisions.
12 June 2025, by Megan Anderson.
Affordable private healthcare provider Benenden Health has found that more than half (58%) of businesses in the UK plan to maintain their existing health and wellbeing investment for employees, mainly due to April’s National Insurance increase.
Surveying healthcare intermediaries across the UK, the member health organisation found that the forces impacting business health and wellbeing spend intentions include National Insurance increases (78%), employee salary increases (45%), NHS wait times (45%) and rising energy prices (35%).
Paired with findings from Elevate1 that show over half (56%) of UK employees are more likely to accept a job with an employer that offers long-term health support, the healthcare provider’s findings highlight a discrepancy between employee needs and business financial capability, creating a need for consideration of affordable health and wellbeing options.
Speaking on the value of healthcare provision, Mike Hay, Benenden Health’s Chief People Officer shares, “Investing in healthcare provision for employees offers numerous benefits that justify the expense, even in a tight financial climate.
"Private healthcare can reduce employee absenteeism by providing quicker access to medical treatments and specialist consultations. This means employees can return to work sooner, maintaining productivity and reducing the overall impact of illness on the business.
"Additionally, healthcare benefits can improve employee satisfaction and retention, as staff feel valued and supported by their employer. Likewise, employers offering preventative, and reactive healthcare solutions gives employees the autonomy to manage their own health. In a competitive job market, offering healthcare can also be a significant differentiator, attracting top talent who prioritise health benefits."
Due to these cost increases, 79% of intermediaries have seen a rise in interest low-cost health cover, with another fifth (39%) reporting a significant increase in low-cost healthcare. Similarly, healthcare intermediaries are saying that businesses are focussing on long-term affordability of healthcare provision, including those with claim premiums.
In 2025, Benenden Health held its corporate member contribution rate for businesses at £15.50 per person, per month.
David Winter, Head of Innovation at Benenden Health supports, "Rather than full-service, premium-based options like private medical insurance (PMI), businesses can consider more affordable healthcare solutions that complement NHS services and focus on features that are most impactful to the widest range of employees.
"These solutions can include health cash plans, which reimburse employees for everyday healthcare costs such as dental and optical treatments. Additionally, businesses can enable access to round the clock private GP services and mental health support, which can significantly enhance employee wellbeing and fast-track them to getting help with their health concerns.
"Where waitlists are long, preventative health support and fast-track access can get employees back to full health fast which is great for the individual and can significantly reduce impacts on businesses."
Benenden Health's research with healthcare intermediaries also found that mental health support (56%) is currently the most-attractive benefit in a health product, with diagnostics ranking (93%) as the most “essential benefit” for business decision-makers.
In 2024, Benenden Health supported its members’ health and wellbeing needs 180,451 times in 2024, rising 4.2% from 2023 (173,079) and reporting a record-breaking year for service to members.