Complex tax system block businesses from improving employee healthcare - Bupa
Patrick Watt - Corporate Director
| Bupa
Bupa’s Corporate Director Patrick Watt considers the big questions that we need to answer if we’re going to nudge employers to support employee health and wellbeing.
Ahead of the publication of the Health and Work White Paper this summer, the task for both businesses and Government is to identify what would really make the difference to improve employee health and wellbeing and support employers who are taking action.
The first area of focus for the Government’s approach must be on culture – both improving the knowledge and confidence of business leaders and raising employees’ expectations.
It’s increasingly recognised that solid wellbeing strategies are not only about providing products and services but are underpinned by a strong leadership commitment. They are more engaging because they reflect the needs, purpose and aspirations of an organisation and its people.
However I see many business leaders who aren’t confident about starting a conversation with employees about wellbeing. Most of them want to do more and implement an open culture of health and wellbeing in their organisation but very often they don’t know where to start or feel that they don't have the right knowledge.
Proposals such as a ‘one-stop-shop’ of information for business leaders and wider employee campaigns will definitely be helpful tools to fill this gap. Most importantly, there’s an important opportunity for business to really take the lead by sharing experiences and case studies. This will also help demonstrate that health and wellbeing strategies are not only about health interventions but need to be much more holistic, taking into account other segments of wellbeing such as financial wellbeing.
With Government support to accredit and push this message far and wide, this could be a fundamental first step towards tackling the stigma of ill-health and creating a culture of wellbeing across UK business.
The second area of focus should be on cost. While it’s necessary to raise employer awareness and to continue showcasing the benefits of workplace health programmes, it’s also important that the Government doesn’t discourage the businesses who are taking action or are willing to do more. We shouldn’t ignore where public policy is increasing the costs for employers and employees who are doing the right thing.
The complex tax treatment of workplace health support is identified by employers as one of the principal reasons why they limit what they offer. More importantly there’s often an extra cost for employees who choose to take up what’s on offer too. Health-related employee benefits aren’t the same as other employee benefits and they shouldn’t be treated or taxed the same. Financial support and a fairer tax treatment for workplace health would send a positive sign to employers about the wider value of providing access to health and work support.
Action from Government on both these fronts can demonstrate that employers have a responsibility to look after employee health and wellbeing and give positive signs that it won’t be an additional burden for business, but a win-win for everyone.
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