Despite financial pressures, Benenden Health’s findings show employers still prioritise supporting staff through affordable health solutions.

Affordable private healthcare provider Benenden Health has released new industry research showing a significant shift in employer demand towards low‑cost health cover, as businesses across the UK continue to face challenging economic conditions. The trend underscores what Benenden Health sees among its corporate members that even under financial strain, employers remain committed to supporting their people.

According to their latest broker research, 69% reported an increase in enquiries for low‑cost health cover over the past 12 months, the highest rise of any product category, outpacing both Private Medical Insurance (63%) and Cash Plans (61%). The findings reflect a growing demand for sustainable, high‑value health benefits as organisations balance rising costs with the need to maintain standards in employee healthcare provision.

Benenden Health's research found 87% of brokers said cost has become more influential than a year ago, with more than half (56%) describing it as 'significantly' more influential. A further 84% cited value for money as increasingly important, while 48% pointed to eligibility criteria, such as excesses and cover limits, as playing a greater role in decision‑making.

Despite economic uncertainty, the majority of businesses remain committed to investing in employee health. 88% of brokers said most of their SME clients plan to maintain or increase spend on health benefits, with a similar proportion (87%) among large organisations. However, the picture is more mixed for small businesses: while 75% intend to maintain or increase spend, 24% are planning reductions, a notably higher proportion than medium (11%) and large (13%) firms.

When asked which services are most attractive to employers, brokers highlighted Mental Health Support (46%) and Digital GP access (45%).

These priorities reflect the growing need for accessible, everyday health support that can be used widely across the workforce.

The data also shows a surge in year-on-year enquiries from several key sectors, with Technology (35%), Professional Services (29%), and Manufacturing (28%) seeing the biggest increases. This suggests that demand for affordable health cover is broadening beyond traditionally high‑uptake industries.

While 51% believe economic conditions for investing in health cover have worsened over the past year. Only 23% felt conditions had improved. Despite this, nearly half (48%) expect more businesses to adopt health products that cover their entire workforce in 2026, signalling a shift towards inclusive, lower‑cost alternatives.

Andy McClure, Chief Commercial Officer at Benenden Health commented: "Businesses are under immense financial pressure, but what’s clear from this data is that employers still recognise the importance of supporting their people. The challenge is finding health solutions that are both affordable and genuinely valuable.

"This month, consultants Armstrong Watson shared that in 2026, UK businesses are shifting away from sole cost-cutting measures, and towards value-based spending. Their insight reflects a broader trend we’re seeing across the market that organisations are becoming far more selective about where they invest.

"As private medical insurance becomes increasingly out of reach for many organisations, we’re seeing a strong move towards sustainable alternatives that offer meaningful support and measurable impact.

"This insight reaffirms Benenden Health's longstanding commitment and expertise to supporting brokers and businesses of all sizes with accessible, tailored healthcare provision without compromising on quality or affordability."

Lucy Pearce, Director at Brown & Brown UK adds, "Rising employment and operating costs mean employers are scrutinising every pound spent, but that hasn’t reduced their commitment to employee wellbeing.

"Employers are becoming far more value‑driven, building sustainable benefit packages that balance cost, coverage, and employee needs. For many of our clients, the focus is on ensuring health support reaches as many employees as possible. Affordable health cover allows employers to offer something meaningful across their workforce, often alongside more traditional benefits such as PMI.

"It’s about improving access and inclusion without sacrificing quality."