Marvin OnumonuUK employee benefits consultancy Broadstone has published its second UK employee benefits landscape report, working with Investor in Customers.
The report found that 43% of employers who made changes to their benefits after the Autumn 2024 Budget brought in salary sacrifice schemes, though these are now impacted by new thresholds announced in the 2025 Autumn Budget.
Around 15% of employers said at least 2% of staff reduced or opted out of pension contributions in the past year, highlighting pressures on affordability and financial confidence.
More than one in 10 employers now have definite plans to introduce private medical insurance within three years, up from 9% in 2023 to 11%.
14% of employers offer company-funded critical illness cover, with 20% either definitely introducing it or considering it.
Mental health and resilience training is now offered by 63% of organisations, and 77% provide access to an employee assistance programme.
Damon Hopkins, head of DC workplace savings at Broadstone, said: “The past two years have seen significant changes to the nation’s workplace pension provision with further reform on the way as the Government undertakes its Pensions Commission on adequacy.
“In the meantime, employers have had to juggle significant increases in National Insurance and economic volatility while the 2025 Autumn Budget delivered another hurdle in the form of future changes to pensions salary sacrifice arrangements.
“This Report examines how employers are approaching pension provision for their employees and the role they will play in the nation’s long-term saving moving forward.”
Brett Hill, head of health & protection at Broadstone, said: “Our first Report was delivered at a time when the nation was emerging from the aftermath of the global pandemic.
“Fast forward two years and the UK is still grappling with the some of those consequences, in the form of significant and sustained pressures on its public healthcare system.
“In this Report, we assess how businesses are increasingly taking these factors into account when reviewing their health, wellbeing and protection benefits to tackle these issues and ensure productivity remains high in the workforce.”
