More UK businesses considering private health insurance for staff, poll finds

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UK business leaders’ worries about the impact of long NHS waiting lists on productivity have been laid bare in a new poll that shows up to four in 10 are considering private health insurance for their workforce.

Research by polling company Savanta for the Independent Healthcare Providers Network, which represents most private health businesses, found that just over half of 1,000 businesses were “fairly or very concerned” that waiting times may increase internal sickness absence rates.

The same proportion was “fairly or very concerned that the current NHS waiting times may result in employees in their organisation taking long absences or permanently leaving work due to sickness”, according to the survey, which polled companies of all sizes. This increased to 65 per cent for companies with more than 1,000 employees.

Waiting lists for non-urgent hospital treatment in England have risen to a record 7.75mn, despite Prime Minister Rishi Sunak’s pledge to ensure they are falling by the time of the general election expected next year.

Some 28 per cent of companies surveyed earlier this month said rates of sickness absence among staff had increased over the past year, rising to 36 per cent at companies with more than 1,000 employees.

The data suggested that some bosses were reacting by considering private medical insurance for their teams.

Of the companies polled, one in five was planning to introduce PMI in the next year. At 40 per cent, businesses with a headcount of between 50 and 249 were most likely to introduce it.

One in four of the companies surveyed already offer private medical insurance, rising to almost half for groups employing more than 1,000 people. The proportion was the same among businesses with between 50 and 249 on the payroll.

David Hare, IHPN chief executive, said the findings showed “businesses are being proactive in ensuring the wellbeing of their workforce”. One in five companies was also looking to introduce occupational health services, he noted.

Hare said it was not surprising that more businesses were considering implementing additional support for staff health and wellbeing, adding: “People see this as something they value highly when deciding where they work”.

The health department said cutting waiting lists was one of the government’s top five priorities “and we are taking action to shorten long waits, despite disruption from strikes”.

It said waits of 18 months or more had been reduced by more than 90 per cent since their peak in September 2021, and that it was “maximising all available capacity by drawing on the independent sector . . . to give patients more control over where they receive their care so they can be treated more quickly”.