Autumn Budget – How the £2k a year pension cap will impact employee health provision and retention

Benenden Health is urging the Government to consider the impact that any rise in pension tax contributions could have on the affordability of employee healthcare.

Benenden Health CEO, Tom Woolgrove:

“Benenden Health supports hundreds of UK businesses with high quality, affordable employee healthcare provision. Employers are often operating with fine margins that are highly sensitive to changes in taxation.

“Affordable access to healthcare for thousands of employees could therefore be at risk if businesses face higher pension tax contributions, as announced in today’s Budget. An unintended consequence of any such change would be to increase demand for health services from the NHS, increasing the strain on the already over-burdened public health system.

“For the businesses we support, affordable healthcare is not just a benefit, it’s a driver of healthier workplaces, healthier lives, and improved productivity. When employees can access timely support, they are more likely to stay well and remain in work. For example, recent research (2025) by Benenden Health found that 87% of employees have faced mental health challenges at work, with stress was the leading cause for 43% of employees taking time off.

“With the Government committed to ‘Keep Britain Working’, we urge that it doesn’t put businesses in the difficult position of cutting vital health and wellbeing services to offset this tax rise. Instead, we ask that it supports employers and employees in maintaining access to essential health provision in the workplace.”