The Association of Medical Insurers and Intermediaries (AMII) has criticised the lack of tax breaks for private medical insurance (PMI) revealed in yesterday’s Budget.
The Budget included £400m in funding to expand the Individual Placement and Support scheme and increase access to resources for mental health and musculoskeletal issues.
But tax breaks, such as a reduction in insurance premium tax, that were requested by the Confederation of British Industry (CBI) and supported by AMII were not announced.
According to AMII, tax relief would promote the adoption of health insurance, contribute to a healthier population, and motivate companies to care for their employees’ wellbeing, therefore assisting in keeping more people in employment.
AMII executive chairman Dave Middleton says: “It is disappointing that the Chancellor has simultaneously raised Corporation Tax while refraining from introducing tax relief for the PMI industry.
“At a time when the NHS is under unrelenting pressure, doctors and nurses are striking over pay and conditions and the backlog following the pandemic shows no signs of reducing, the government has missed the chance to take positive steps to encourage growth in the PMI market.
“While we welcome the £400m of funding for mental health and musculoskeletal support, I would urge the Chancellor to go further and review the announcements made in the Budget to offer some much-needed respite for the private health and wellbeing sector.”