Private medical insurance delivers a £2.5bn annual boost to the UK economy through reduced sickness absence and improved productivity.
According to the WPI Strategy of the Bupa-commissioned Healthy Workforce, Healthy Economy report, £1.2bn of this comes from lower absence levels, while £1.3bn is linked to reduced presenteeism, where employees are less productive due to ill health.
The findings highlight a particular impact among SMEs, with PMI associated with 22 fewer sickness absence days and 24 additional productive days per business each year, generating around £14,700 in additional gross value added.
Despite some concerns that PMI can create a two-tier system that undermines the NHS, the report suggests it reduces pressure on the NHS, with estimated savings of £4.2bn annually, while supporting faster return to work and improved workforce participation.
Musculoskeletal conditions, headaches and mental health issues were identified as key drivers of absence, with earlier treatment linked to hundreds of thousands of additional working days across the UK workforce.
Bupa Global, India & UK CEO Chris Carroll says: “A healthy workforce is the foundation of a growing economy. In commissioning the Keep Britain Working review, the government has rightly recognised that tackling health-related economic inactivity is an essential priority. The good news is that private healthcare makes a measurable difference in keeping the UK well and in work, supporting businesses of all sizes to prosper, increasing access to healthcare and easing pressure across healthcare systems.
“At Bupa we know early intervention changes health outcomes. We are reinvesting our profits to fund healthcare innovation, personalised interventions, fast diagnosis and access to world-leading facilities, clinicians and treatment options. We stand ready to work with government, employers and healthcare providers to boost the health of our workforce and our economy.”
Institute for Public Policy Research (IPPR) head of health Sebastian Rees says: “This research is a timely and welcome contribution to one of Britain’s most pressing policy debates: how to restore the health of a workforce that lags well behind our international peers. It puts hard numbers on the economic and productivity gains delivered by employer‑supported healthcare, from faster access to diagnosis and treatment to reduced absence and higher workforce productivity. We hope it serves as a wake-up call for government and employers alike to invest seriously in keeping Britain’s workforce healthy and productive.”
British Chambers of Commerce head of policy – people & work Patrick Milnes says: “Businesses of all sizes are struggling to find and keep the skilled people they need, and rising sickness absence is making that challenge even harder. Employers want to help, but they need accessible, high‑quality workforce‑health support to respond effectively. A new partnership with government is essential to unlock the talent the economy is currently losing, and this research can play a key role in informing this important conversation.”
Lancaster University director of the work foundation Ben Harrison says: “Stemming the flow of people leaving the UK workforce due to ill-health remains an urgent priority. Once someone leaves work due to a health issue, it can become increasingly difficult to support a sustainable return to employment, meaning early intervention and prevention are key. Government and employers have a joint responsibility to deliver on the ambition to ‘Keep Britain Working’, and must work together to ensure the potential benefits of new employment rights and the ongoing work led by Sir Charlie Mayfield supports change in those sectors where it is needed most.”