Chancellor Rachel Reeves has unveiled plans to add billions to the NHS, including a £22.6 billion boost to the NHS’s day-to-day budget and an additional £3.1 billion in capital funding over the next two years, marking the largest real-term spending increase since 2010.
This investment aims to cut waiting times to a maximum of 18 weeks by providing 40,000 extra hospital appointments and enhancing capacity for diagnostics and surgeries.
Long-term reforms aimed at shifting from hospital-centric care to a community-based model, embracing digital innovation and preventative healthcare, and achieving the ambitious goal of 2 per cent productivity growth are outlined in a new 10-year NHS Plan.
Additionally, the government has set aside £1 billion for repairs and an extra £1.5 billion for new beds, diagnostic centres, and surgical hubs to improve hospital infrastructure.
Industry players, however, caution that the budget overlooks key areas such as employer involvement and the health and protection sectors and advocate for tax changes to eliminate barriers to employee and business investment in healthcare.
Simplyhealth CEO Paul Schreier: “The government has committed to deliver urgent change for healthcare across the country, but today’s budget leaves many questions unanswered. Parts of the health system including the health and protection sectors as well as the role of employers continue to be overlooked and their potential left unrealised.
“Working people are struggling to rely on the NHS. With waiting lists for everyday treatment at record highs, people need access to services such as GPs, counselling and physio. Mental health and back pain are the two leading causes for time off work, contributing to record highs of economic inactivity and economic stagnation.
“This autumn budget missed a significant opportunity to harness the potential of both employers and the wider health and protection sector in delivering affordable, preventative healthcare. With 70 per cent of businesses wanting to do more for their people’s health and a projected 4.3 million expected to be economically inactive by the end of this parliament, the practical and moral imperative is clear.
“As set out in our blueprint report Improving access to healthcare via the workplace launched in parliament earlier this month, the Government must address the excessive tax burden that impacts businesses and their employees when investing in health cover products. Since 2015, the rate of Insurance Premium Tax has doubled from 6 per cent to 12 per cent and the current Benefit-in-Kind exemptions do not reflect employers’ efforts today. These barriers stop healthcare from being accessible to all and risk worsening the current workforce sickness epidemic.
“The NHS does not have the capacity to be our only first line of defence. And that’s why we are here to help. We know from the thousands of businesses we partner with that our low-cost health plans are helping those at work to address everyday healthcare needs, from lorry drivers to supermarket shelf stackers, teachers and posties.
“We must utilise every solution to ensure that no one is left waiting for treatment and a prevention economy is our future”.
Towergate Employee Benefits head of group risk David Williams says: “There were green shoots regarding NHS funding where the Chancellor cited the aim of going “from sickness to prevention”. The employee benefits industry focuses heavily on prevention and rehabilitation for workplace sickness so this phrase is music to our ears. However, the detail is still light and any investment will take time to improve NHS capacity and waiting lists. So it’s crucial that, in the meantime, employers take advantage of private sector support available through their various employee benefits.