Business leaders and wellbeing advocates have warned that the Chancellor’s Autumn Statement missed a key opportunity to support workplace health and help employers tackle rising staff absence, poor mental wellbeing and falling productivity.
Despite an emphasis on public services and economic growth, the 2025 Budget offered no new tax relief or funding for workplace wellbeing initiatives, with employers left to absorb ongoing pressures on both business costs and employee welfare.
Observers said this omission was especially stark given the government’s focus on economic performance. Official figures show productivity remains sluggish and economic inactivity due to long-term sickness has reached record highs.
Workforce Health Seen as Missing Link
Presenting the Budget in Parliament on Wednesday, Chancellor Rachel Reeves confirmed new investment in transport, the NHS and childcare, alongside measures to stimulate housebuilding and energy infrastructure. But there was no mention of employer-led health programmes, nor any financial incentives to support staff retention or prevent burnout.
Paul Kelbie, founder of wellbeing and benefits platform Incentifi, said workplace health should be part of any serious economic plan. He argued that supporting staff to manage stress and financial pressure could improve output, reduce reliance on the NHS and keep people in work longer.
“UK businesses are being squeezed by costs and employees are struggling with health, stress and reduced disposable income,” he said. “If the government wants to boost productivity, it should incentivise companies to invest in wellbeing solutions that genuinely improve people’s lives and save them money. Prevention is cheaper than cure, for employers and for the NHS.”
Employer Demand for Support Rising
Recent data from the Chartered Institute of Personnel and Development (CIPD) shows that nearly half of employers now cite mental ill health as the main cause of long-term absence, up from just over a third five years ago. Pressure is growing on HR teams to offer support that goes beyond traditional benefits.
The CIPD has repeatedly called for better support for employers, including targeted funding for health and wellbeing initiatives, guidance for SMEs and clearer national policy linking wellbeing to growth and retention.
A 2024 survey by the Confederation of British Industry found that 71 percent of employers believed poor mental health was affecting productivity, yet only 29 percent felt they had adequate government backing to address it.
‘Missed Opportunity’ on Prevention
While Reeves pledged to grow the economy and make work pay, employers said these goals cannot be met if workplace health is left out of the picture. Several industry groups had lobbied in advance of the Budget for specific support on preventative health measures, including tax exemptions for employee wellbeing benefits.
None of those measures were included in the final statement. Experts said this leaves businesses with few options beyond self-funding, which is increasingly difficult for smaller firms.
According to the Office for National Statistics, the UK lost 185 million working days to sickness in 2024, the highest figure in over a decade. The majority of those days were due to mental health and musculoskeletal conditions, both of which can be addressed through workplace interventions.
The latest NHS backlog figures show long waits remain for both physical and mental health treatment, increasing the pressure on employers to act early. However, with no government support, many feel unequipped to offer meaningful programmes.
Preventative Health Support
Campaigners argue that wellbeing needs to be seen not as a “perk” but as a core part of retention, performance and workforce stability. They point out that employers investing in wellness schemes often see lower absence rates, higher engagement and stronger retention among midlife and younger workers alike.
The government has not yet indicated whether wellbeing will feature in future economic packages. Campaigners say the case is growing for policy that supports preventative health investment at scale.
With mental health conditions now responsible for a rising share of long-term economic inactivity, and employer expectations under review following legal guidance on menopause and stress-related claims, the absence of a wellbeing strategy in this year’s Budget has left many employers asking what comes next.