The Association of Medical Insurers and Intermediaries (AMII) said it was disappointed chancellor Rishi Sunak did not go further to bring the private sector in to help the NHS through its current backlog.
AMII executive chairman Dave Middleton (pictured) welcomed the extra funding for the NHS but believed the two parties could work much more closely.
And he noted that while it was good to see insurance premium tax (IPT) had not been increased, there remained a strong argument for removing it altogether on health insurance.
“We are delighted to see the chancellor is injecting much-needed resources into tackling record-breaking NHS waiting lists but there is much more he could have done to incentivise the NHS and private healthcare sector to work together,” Middleton said.
“The measures he has announced are unlikely to solve the unprecedented issues facing the health service and, while subsidised private health insurance would, without doubt, reduce the burden on the NHS, it is a real shame that there seems to be no appetite within government to consider this.”
He added: “We will continue to lobby hard that healthcare costs should be zero rated for IPT purposes in line with other protection and general products, as they make an equally valuable contribution to the health of the nation and the UK economy.”
Universal Credit changes
Meanwhile, the protection sector welcomed the changes to Universal Credit (UC).
The taper rate for earned income is being cut from 63% to 55%, meaning people will lose less of their benefit payment as they earn more.
And the amount low-income households with children, or a household member with limited capability for work, can earn before their award is reduced is increasing by £500 a year.
However, insurer The Exeter said it does little to help those individuals that are unable to work as a result of illness or injury.
“Income protection remains the best way to protect our most important asset, income, from unexpected events, and the changes to Universal Credit emphasise the need for more awareness of how most state support simply isn’t sufficient for the most vulnerable: those who physically can’t work,” said director of distribution and marketing Steve Bryan.
“Given the protection industry’s key role in supporting people’s financial and personal wellbeing during the most turbulent time in decades, it is surprising to see the government has neither recognised nor pledged support for the industry in the Budget announcements.
“While government initiatives certainly bore the brunt of supporting the population through the pandemic, the protection industry was essential in supporting those that fell through the cracks, weren’t eligible or needed more than just state support,” he added.