Simplyhealth responds to Government’s announcement of IPT increase
In the budget on 8 July, the Government announced plans to increase Insurance Premium Tax (IPT) from 6% to 9.5% from November 2015.
While we understand that the Government faces financial challenges to meet the costs of the NHS and other important public services, we’re disappointed in the approach it’s taking. An increase in IPT affects individuals and families who are taking personal responsibility for their health, and employers who are supporting the health and wellbeing of their employees. These are the people who are helping to take some of the strain away from the NHS.
As a business, this increase does have a significant impact on Simplyhealth. Insurance Premium Tax applies to the premiums of our private medical insurance, health cash plans, dental plans and accident plans.
IPT was last increased in 2011 by 1%, and although we absorbed some of the cost then, it is unlikely that we will be able to do the same this time. The scale of this increase means we now need to consider our pricing to ensure that we can continue to help our customers and clients care for their health needs, while still providing the value they require.
We are now looking in detail at the implications and timing of such an increase and will be communicating to our customers in due course.
Romana Abdin, Chief Executive, Simplyhealth