Two-thirds of employers expect to cut workplace healthcare budgets

Two-thirds of employers expect rising costs to reduce spending on workplace healthcare next year, despite growing pressure from government for businesses to play a greater role in keeping people healthy and in work, according to new research.

A survey of 1,000 senior employer decision-makers commissioned by Healix Health found that 66% expected their healthcare budgets to come under pressure in 2026, with almost a quarter (23%) anticipating significant reductions.

The findings come as the government’s Keep Britain Working review calls on employers to take a greater role in preventing ill health, supporting early intervention and helping people remain in or return to work. The review highlighted that 2.8 million people are now economically inactive due to long-term health conditions.

The research suggests employees are becoming increasingly reliant on workplace healthcare as pressure on NHS services continues. More than half (56%) of employees said NHS waiting times had made them more dependent on healthcare provided by their employer, while 28% reported taking time off work during the past year because they had been unable to access the care they needed.

However, the survey also identified a disconnect between employers’ perceptions of workplace healthcare and employees’ experience of it.

While 81% of employers believed their healthcare provision had improved over the past year, only half (50%) of employees agreed. The gap was widest in organisations employing more than 6,000 people, where 71% of employers said support had improved compared with just 36% of employees.

Despite employers expecting budgets to tighten, employees remained optimistic about future investment. More than eight in 10 (86%) said they were confident their employer would continue investing in workplace healthcare during 2026.

Sarah Taylor, director of corporate healthcare proposition at Healix Health, said tighter budgets meant employers would need to focus on making existing services easier for employees to access rather than simply introducing new benefits.

‘Too often, businesses end up with an untidy cupboard of benefits that looks comprehensive on paper, but is hard for employees to understand, navigate or use when they actually need support,’ she said.

She added that organisations should use data to identify the healthcare services employees were most likely to use and remove duplication, enabling workplace healthcare to play a greater role in reducing sickness absence and supporting people back into work.

The research was conducted by Censuswide in March 2026 and was based on surveys of 1,000 senior employer decision-makers and 1,000 employees working for organisations that provide workplace healthcare.