Almost three-quarters (71 percent) of employers said they have been forced to rethink their health benefits as a result of rising business costs.
However, the research, from provider Simplyhealth, also showed that the majority of UK businesses (73 percent) want to do more to protect employee wellbeing as the NHS struggles. This is a rise of 3 percentage points since May 2024, the provider said.
But employers told the survey that they faced various barriers to investing more in employee health.
Rising business costs eating into budgets was a key concern for 44 percent of employers. Almost half (49 percent) said their business was currently being impacted by economic uncertainty, and 39 percent reported feeling the impact of NI rises.
Another top concern was wasting money on health benefits employees don’t use, with 38 percent reporting this, while 31 percent said it was difficult to find a healthcare plan for employees with pre-existing health conditions.
Simplyhealth said its research found that “simplicity” is the thing most likely to drive employees to use their health benefits, followed by speed of access (36 percent), and cover for pre-existing conditions (22 percent).
In response, the provider has launched a simplified, low-cost £3-per-month health essentials service with access to virtual GPs, mental health, and physio support.
Dubbing it a “one-stop shop” product, the provider said it gives employers flexibility to create a bespoke offer, while only paying for what they need. Extra “bolt-on” funding solutions can be applied and there are services unique to the health benefits market including neurodiversity assessments and menopause coaching, Simplyhealth said.
Paul Schreier, CEO at Simplyhealth, said: “We are excited to launch this new product range, designed with simplicity and quality at its heart. We understand that businesses want to do more to look after their employees, while being frustrated with traditional health benefits packages and contending with wider financial pressure. Our new products will offer employers a one-stop shop of health solutions so they can tailor benefits to their workforce and only pay for what they need.
“The services provide support for prevention of health problems, through treatment and all the way to after-care. It’s all housed in one simple app, so rather than go to lots of different places to get healthcare, users get seamless support for every step of their health journey.”
