Simplyhealth responds to latest Insurance Premium Tax increase
In the recent budget (16 March 2016), the Government announced plans to further increase Insurance Premium Tax (IPT) by 0.5%, effective from 1 October 2016, bringing it to 10%. This is the second increase IPT has seen in a year when it was taken from 6% to 9.5% in November 2015.
IPT is applied to all general insurance premiums, including health insurance. It therefore applies to the health cash plans, dental plans and accident plans that we offer.
We’re disappointed that despite the concerns highlighted by the industry after the last budget in 2015, the Government has chosen to place further strain on this area. As we previously stressed, by having a health plan our customers are taking greater responsibility for their healthcare needs which ultimately helps relieve the pressure on the NHS. Our concern remains that this increase could result in health cover becoming unaffordable for our customers or as a consideration for others. Without cover, individuals may put off healthcare issues, storing up greater problems which eventually fall to the NHS to resolve.
We’re currently reviewing the impact of this latest rise on the business and what this will mean for our customers.
We have been helping people with their everyday health for over 140 years. Our roots are in the hospital funds set up during the Victorian era to help working people save for their medical care, and we still follow mutual values today. With no shareholders, our profits go back into supporting our customers and healthcare charitable causes, donating over £1 million each year. Last year, we donated £1.6 million.
In 2011, we acquired Denplan Limited, the UK’s leading dental payment plan specialist. Simplyhealth has 1,391 employees based across our offices in Andover, Manchester, Leeds and Denplan in Winchester. We serve nearly 3.5 million customers through cash plans, dental plans, Denplan and pet health plans. Our Independent Living Centres provide daily living and mobility products, including powerchairs, mobility scooters and wheelchairs, in Andover, Bristol, Burnham, Droitwich, Kenilworth, Leeds, Northfield, Norwich, Sutton Coldfield, Telford, Willenhall and Wolverhampton.
Simplyhealth is a trading name of Simplyhealth Access, which is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
For further information:
Caroline Newton, Public Relations and Social Media Manager 0344 579 2274
Laura Miller, Media Relations Officer 0344 579 2266
Follow us on Twitter @SimplyhealthUK and at Facebook.com/SimplyhealthUK