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 17.1million working days lost in 2022/23,
equivalent to a loss of £5.2billion 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 2.8million 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 10 (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 14million 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.”