BCC: Tax Reform Can Ease Workplace Health Crisis
Date Posted: 28 Oct, 2024
The British Chambers of Commerce (BCC) is urging the Chancellor to ease the workplace health crisis by reforming the tax system.
Its two calls ahead of the Autumn Budget are:
- For the Government to make all occupational health, cash plans and medical insurance a non-taxable benefit in kind for employees.
- To encourage business take up of health insurance for employees by cutting the Insurance Premium Tax.
BCC research has found that only one third of businesses (36%) currently offer staff well-being or occupational health support with a slightly lower proportion (30%) providing no services at all.
Yet sickness and ill-health are now at such high levels they are significantly impacting the UK’s economic performance.
The Health and Safety Executive estimated that stress, depression or anxiety alone accounted for 17.1 million working days lost in 2022/23, equivalent to a loss of £5.2 billion in output per year.
According to Government data, the number of people out of work due to long-term ill-health has soared by 650,000 to 2.8 million since the pandemic.
Data, from health plan provider Simplyhealth, found that over half of (52%) employees said that if their employer offered a form of health cover, such as GP appointments and physio, they wouldn’t need to take as much time off sick. In addition, nearly six in ten (57%) companies who don’t offer health cover are now considering it but are worried about the expense.
Making sensible tax reforms would make it easier for workers to access healthcare and for employers to provide it. It would help ensure people don’t have to leave the workforce unnecessarily due to ill health, and increase UK productivity.
The Simplyhealth data also found that 70% of businesses feel they have a responsibility to look after their employee’s health, with 40% noticing employees are struggling to access NHS care.
It backs up findings from the Association of British Insurers which found that more than 14 million sick days were prevented in one year by employers providing health cover.
Shevaun Haviland, Director General of the British Chambers of Commerce said:
“Ambitions to grow the UK economy and increase productivity will be undermined if we don’t have a fit and healthy workforce. Businesses understand this and want to play their part, but the current tax system is leaving the UK hamstrung in its efforts to ease the workplace health crisis.
“The Autumn Statement is a golden opportunity for the Government to partner with business and deliver national solutions to a national issue. By coming forward with simple and proportionate healthcare tax incentives, the Chancellor can provide a much-needed lift to the UK workforce as we work together to deliver economic growth.”