Labour’s drive “from sickness to prevention” should include a cut to insurance premium tax (IPT) to meet surging demand for “timely and preventative” complementary healthcare provided by the private sector.
This is according to Cara Spinks, head of life and health at independent consultancy Broadstone, after data from HM Revenue & Customers data, released this morning, revealed IPT receipts hit £4.42bn through the first five months of 2024/25. This exceeded the same period last year (£3.92bn) by 13%.
In the wake of Lord Darzi’s report which revealed the NHS is in a “critical condition,” PM Keir Starmer called for a “much bolder” drive from sickness to prevention to tackle the issues afflicting the service.
This week a cross-party commission made up of health experts and MPs, also proposed transforming the NHS from a “reactive” 20th century health system to a “proactive” 21st century health creation service.
This was according to findings from think tank the Institute for Public Policy Research’s (IPPR) cross-party commission on health and prosperity.
Growing awareness of personal risk
According to Spinks, Lord Darzi’s report has highlighted the “serious” nature of the challenges facing the NHS.
“This, and a growing awareness of personal health risk amongst the general population, means that demand for timely and preventative complementary healthcare remains strong, despite rising claim costs,” Spinks said.
Spinks added affordable access to the private healthcare market, particularly to more preventative forms of treatment such as health screenings, should be a key strategy for the government to alleviate pressure on the NHS and maximise economic growth by keeping people healthy and in work.
“Reducing or removing IPT for health insurance products may not be on the list for the upcoming autumn budget,” she added.
“But it ought to be a serious consideration if the government wants to incentivise businesses to protect the long-term health and productivity of the workforce and safeguard already stretched NHS resources.”