Employee benefits are firmly under the spotlight this year. Rising healthcare pressures, evolving employee expectations, and ongoing cost considerations make this an ideal time for employers in England to review whether their benefits strategy is delivering real value for both employees and the business.
We have highlighted three key areas for employee benefits and HR professionals to focus on:
1. Employee Wellbeing Employee wellbeing remains a central focus, particularly physical and mental health. While the direct impact of COVID has eased, many people continue to face challenges accessing timely NHS treatment. This has driven increasing demand for private healthcare services, especially virtual GP access.
These pressures on the NHS help explain why private medical insurance and related benefits continue to be highly valued by employees, as they enable quicker diagnosis, faster treatment, and reduced workplace absence.
2. Pension Salary Exchange Following the Autumn Budget 2025, pension salary exchange remains an important consideration for employers. The planned restrictions on National Insurance savings will not take effect until April 2029. This means employers and employees can continue to benefit from current arrangements for several more years.
However, forward planning is essential — particularly for higher earners — as employee contributions made through salary exchange are expected to be capped at £2,000 per year (for National Insurance purposes) once the changes come into force.
3. Private Medical Insurance Despite strong demand, private medical cover is still relatively uncommon in England. Recent research shows that only around 30% of full-time employees currently have access to private medical insurance, set against NHS England waiting lists that stood at approximately 7.1 million in March 2026.
Cost is often cited as a barrier, but there are several ways employers can improve affordability, including adjusting policy limits, excesses, and hospital lists. Many organisations find that cover can be more cost-effective than expected once productivity gains and reduced absence are taken into account.
For small and medium-sized businesses, entry-level options can offer a practical starting point. These provide more limited cover but can be introduced at a relatively low cost, often from around £5 per member per month. Health Cash Plans are a popular alternative, offering fixed cash benefits towards dental and optical treatment, mental health counselling, virtual GP access, and specialist consultations.
Key employee benefit trends for 2026 in England centre largely on health and financial wellbeing. Ensuring employees understand what benefits are available and how to access them is critical. Clear communication — whether through online resources, newsletters, or presentations — will become increasingly important as the 2029 salary exchange changes approach.
A well-designed benefits strategy can make a meaningful difference to your employees and your organisation.
