Two-thirds of employers expect to reduce healthcare budgets as businesses urged to do more

Unsplash - 15/07/2026

New research from Healix Health’s Hidden Workplace Healthcare Gap Report has revealed that two-thirds (66%) of employers expect rising costs to reduce their healthcare budgets in 2026, despite growing pressure on businesses to play a bigger role in keeping people healthy and in work.

The findings come as the Keep Britain Working review continues to put employer-led healthcare high on the national agenda. The review has warned that 2.8 million people are now economically inactive due to health conditions, with employers being asked to play a greater role in prevention, early intervention and supporting people back to work.

However, Healix Health’s research suggests this expectation is landing at a difficult time for businesses. Almost a quarter (23%) of employers say the reduction in healthcare budgets will be significant, raising questions over how far businesses can expand their role in workplace health while managing rising cost pressures.

Employees are relying more on workplace healthcare

Despite employers expecting budgets to come under pressure, employees remain confident that investment will continue. More than eight in ten (86%) employees say they are confident their employer will keep investing in workplace healthcare in 2026.

This comes as employees are already relying more on workplace support. More than half (56%) say pressure on the NHS has made them more reliant on workplace healthcare, while 28% have taken time off work in the past year because they were unable to access the care they needed.

Existing support is not always reaching staff

The research also shows that even where employers have improved their healthcare provision, employees are not always seeing or feeling the benefit.

While 81% of employers believe their workplace healthcare support has improved over the past year, only 50% of employees agree. The gap is even wider at organisations with more than 6,000 employees, where 71% of employers say support has improved, compared to just 36% of employees.

As workplace health moves up the national agenda, this suggests employers will need to focus not only on what support is in place, but also on how clearly it is communicated and how easily employees can access it when they need help.

“At a time when employers are being asked to play a bigger role in keeping people healthy and in work, many are also having to look much more closely at what they spend and whether it is making a difference. The answer is not always to add more services. Too often, businesses end up with an untidy cupboard of benefits that looks comprehensive on paper, but is hard for employees to understand, navigate or use when they actually need support. That matters because workplace healthcare can only help reduce absence and support people back to health if employees know what is available and feel able to access it. As budgets tighten, the employers that make the biggest difference will be those that simplify the journey, remove duplication and use data to understand what their people actually need. That is how workplace healthcare moves from being a tick-box benefit to something that genuinely helps keep people well and in work.”

Sarah Taylor, Director of Corporate Healthcare Proposition at Healix Health

Related Articles

Insurance & Protection newsletter

Sign up to our Insurance & Protection newsletter to get the last news and insight direct to your inbox.

Name

Trending Articles


IFA Talk Insurance and Protection is the new addition to the IFA Talk podcast family, where we discuss the latest topics relevant to Insurance and Protection professionals.

Insurance & Protection Podcast – latest episode

IFA Magazine
Privacy Overview

Our website uses cookies to enhance your experience and to help us understand how you interact with our site. Read our full Cookie Policy for more information.