Following Lord Kinnock’s announcement earlier this week that suggests the government should start charging VAT on private healthcare providers to raise funds for the NHS, Ian Talbot, CEO at Healix Health, discusses how this could impact private healthcare providers and employers.
“While Lord Kinnock’s proposal may be well-intentioned, it risks making healthcare access harder at a time when we should be focused on improving it, not restricting it. Employer-backed private healthcare is a hugely valued benefit. Driving up costs will likely mean fewer businesses offer it, fewer employees can access it, and more pressure ends up back on an already overstretched NHS.
For businesses, it’s déjà vu. We saw the same with the National Insurance hike earlier this year, leading to higher costs for employers, and employees feeling the squeeze. As businesses weigh up their options, healthcare trusts give employers more control over the benefits they offer, avoid the 12% Insurance Premium Tax on PMI, and let forward-thinking companies support their people in a way that genuinely works for them.”
