Marvin OnumonuClare Lusted, head of product proposition at Unum and Katharine Moxham, spokesperson for GRiD, said the Autumn Budget missed its opportunity to support the protection and health industry’s role in workforce wellbeing and economic resilience.
There was no reduction in Insurance Premium Tax, which would have eased costs for small and medium-sized enterprises (SMEs) and helped investment in employee benefits.
Lusted said: “The Autumn Budget was a missed opportunity to reinforce the role of the protection and health industry in supporting workforce wellbeing and economic resilience.
“We were disappointed to see no reduction in Insurance Premium Tax, which would have eased costs for SMEs and enabled greater investment in employee benefits – directly supporting the ambitions of the Keep Britain Working Review.
“Our recent survey revealed that nearly two thirds (63%) of SMEs said rising employer National Insurance contributions have limited their ability to invest in benefits, while 46% cite increases to the minimum and living wage.”
Lusted added: “Higher employment costs mean higher prices, fewer jobs and less money in people’s pockets.
“At the same time, businesses need the financial headroom to invest in health and wellbeing support that keeps employees healthy, engaged and productive.
“SMEs employ nearly 17 million people, so if they are squeezed, not only does growth stall, but the workforce risks losing access to the very benefits that underpin resilience and long‑term economic security.”
She said: “On top of these pressures, the decision to apply NI to pension salary sacrifice contributions above £2,000 introduces another cost.
“Salary sacrifice has been a cost‑efficient way to offer benefits, but this change reduces its attractiveness and weakens pension saving and long‑term financial security for employees.
“At a time when employers are looking for ways to support their workforces, more supportive measures would have helped them to do so.”
Moxham said: ”The Autumn Budget misses a vital opportunity to tackle economic inactivity and improve workforce health and wellbeing, which was in line with their own Keep Britain Working Review.
“And changes to salary sacrifice for pension contributions will further drive up employer costs, make saving harder for employees, and add unnecessary complexity.
“Combined with existing double taxation on group income protection arrangements, these measures risk undermining benefits that help employees prosper.”
