The recent Autumn Budget from Chancellor Rachel Reeves may bring unintended consequences for workplace wellbeing, according to business leaders in the employee benefits and health sectors.
While the budget aims to tackle key economic challenges, some of the new measures could ultimately hinder employers’ ability to invest in the health and wellbeing of their workforce, creating concerns about the future resilience and productivity of UK businesses.
Dave Capper, CEO of Westfield Health, warns that adjustments to Capital Gains Tax (CGT) and increased employer National Insurance contributions could squeeze business budgets, forcing some to consider cutting back on essential wellbeing programs.
Capper commented:
These initiatives are not just a cost but a vital investment in your people’s long-term resilience, health, and productivity.
Dave Capper, CEO of Westfield Health
With rising costs, there’s a genuine risk that companies may deprioritise such programs—leading to increased absenteeism, burnout, and reduced productivity.
Capper also points out a missed opportunity in the government’s decision to maintain the Insurance Premium Tax (IPT). Removing IPT could have made private health insurance more accessible, reducing pressure on NHS services and encouraging more employers to invest in their employees’ health. As it stands, the status quo risks leaving employees with fewer options during a time when proactive health measures are needed most.
David Williams, head of group risk at Towergate Employee Benefits, acknowledges some green shoots in the budget, specifically in the government’s mention of going “from sickness to prevention” for NHS funding. Williams sees this as an encouraging sign, though details are still thin. Meanwhile, the employee benefits industry will need to help bridge the gap, ensuring employers know the value of investing in well-structured employee health support—despite tighter budgets due to increased National Insurance.
While the extension of the Household Support Fund provides some reassurance for financial wellbeing, the broader budget changes present challenges. As Capper highlights, it’s crucial for businesses to avoid viewing wellbeing programs as discretionary. Employers must maintain their commitment to workplace wellbeing if they are to foster a resilient and healthy workforce, even in the face of rising costs.
Will businesses rise to the challenge, or will the new budget signal a step back for employee wellbeing? The coming months will tell.
Joanne is the editor for Workplace Wellbeing Professional and has a keen interest in promoting the safety and wellbeing of the global workforce. After earning a bachelor's degree in English literature and media studies, she taught English in China and Vietnam for two years. Before joining Work Well Pro, Joanne worked as a marketing coordinator for luxury property, where her responsibilities included blog writing, photography, and video creation.
