Overwhelming support from HR leaders for a new universal wellbeing tax break

Employers call for a new universal wellbeing tax break to be announced in the autumn Budget statement to support NHS reforms, reduce absenteeism and help boost economic growth.

A survey of employers representing more than 88,000 workers suggests that the government should consider a new tax break aimed at supporting workforce wellbeing.

Occupational Health Assessment Limited’s (OHA) research indicates that 84% of HR leaders would like the government to consider a new tax incentive around worker wellbeing, and almost three in four (74%) would favour a tax break that supports a wide range of employee wellbeing issues including physical health, mental wellbeing and financial security.

Steve’s thoughts

Steve Herbert, 0ur Brand Ambassador observed;

“Much of the commentary in advance of the Chancellor’s autumn Budget statement is centred on tax increases given the challenges of the nation’s finances.  Whilst employers recognise these concerns, many believe it is in the interest of all parties – government, employers and employees – if wellbeing tax breaks were simplified to ensure that more workers can be prevented from becoming ill and therefore stay fit, healthy and productive.

Company-funded employee benefits, wellbeing provision and occupational health support already do much of the heavy lifting in preventing minor wellbeing issues becoming major health problems for both the NHS and by extension the entire nation.  It surely makes sense to clarify and reinforce support in this area to continue and extend this good work to many more employees.”

Occupational Health Assessment Ltd suggest that there is much confusion about the tax treatment of many employee benefits and particularly the employee’s benefit in kind liability when a company-paid offering is made use of by any individual worker. 

As a result, many of these potentially important offerings are either unavailable or remain unpromoted in many employer-sponsored wellbeing offerings.  Examples include the rather confusing difference in tax treatment between employee and family members in Employee Assistance Plans (EAP), employer arranged financial advice, pension decumulation guidance, the tax treatment of low-cost health cashplans, and even possible confusions about the taxation of any reasonable adjustments recommended by occupational health professionals or the government’s newly launched WorkWell scheme.

Magnus’ comments

Managing Director Magnus Kauders commented;

“Our survey suggests that HR experts favour a universal wellbeing tax break rather than siloed tax incentives for specific components of workforce wellbeing. 

There is therefore a case for the government to review the tax treatment and tax incentives that currently exist for many low-cost wellbeing and employee benefits and perhaps replace this confusing landscape with one overreaching offering that is more easily understood, avoids any additional employee tax liabilities on these inexpensive benefits, and is easy to report under the new payrolling of benefits in kind system from 2027.  In this way many more employers would be encouraged to offer and promote these valuable support options to their workers.”

Universal wellbeing tax break

The survey revealed that three in every four employers (74%) favoured a universal wellbeing tax incentive.  The next most popular option was a tax break for financial wellbeing (12%), followed by mental health (9%) and just (4%) for physical wellbeing support.

Herbert concluded;

“The government’s focus in NHS reform is moving the service from one of treating sickness to actively preventing illness.  Encouraging employers to do more to support the wellbeing of their workforce will bring that ambition closer to reality.”

Ends                  

Press release issued 05/08/2025