Third of workers not using health benefits

Spanning the views of both employees and employers, Simplyhealth’s research shows that a third (34%) of British workers don’t use their workplace health benefits at all, while over half (53%) that do use them have experienced barriers to accessing them.

In terms of specific barriers to access, a sixth (16%) of employees said they had to ask their line manager for information or approval beforehand, while more than one in ten (13%) needed pre-authorisation from their manager or insurer to use their health benefit. A similar proportion (13%) found the process too complicated, while  9% said their pre-existing conditions were not included in the cover.

There is clear demand for health benefits to be simpler, with over a third (37%) of employees saying this would make them most likely to use the benefits. This is followed by quick access to health services (36%), and cover for pre-existing conditions (22%). Overall, a fifth of employees (20%) said they would be more likely to use their health benefits if they knew their claims would be paid quickly, and if it meant they didn’t have to take time off work for appointments (19%).

Employers want to do more

Simplyhealth’s research also reveals that employers feel a responsibility to do more to support their workforce, with three quarters (73%) wanting to look after their employees’ health due to longer NHS waiting times.

Despite this, most employers (86%) have at least one concern or worry when putting in place health benefits for their employees. For example, nearly a third (31%) are worried that they will have difficulty finding health plans for employees with pre-existing health conditions.

The benefits of simple, accessible workplace health benefits are also clear. Six in ten (60%) employees say it makes them happier at work, nearly half (48%) say health benefits are an important reason for staying in their job. For those not currently receiving workplace benefits, over half (54%) say having them would make them more productive at work, while a similar proportion (48%) believe they would take fewer sick days as a result.

Paul Schreier, CEO at Simplyhealth, said: “Employers recognise the huge responsibility they have to support the health of their people and the value it creates in terms of reducing long-term sickness and boosting productivity. Workplace health benefits are a big part of these efforts, but too often traditional offers are complex and difficult to access.  

“The government’s 10-Year Plan for the NHS has put prevention at heart of ambitions for the health service, and businesses are very well placed to further those objectives –promoting preventative healthcare that improves productivity while easing pressure on the NHS.

“Simplifying health benefits is one of the first steps businesses can take. It’s why at Simplyhealth we’ve focused on developing a range of affordable healthcare services, including 24/7 GP access, mental health support, health cash plans and pay-as-you-go services. These aim to simplify access, reduce costs and boost uptake, with no GP referral or pre-approval required and the majority of plans covering pre-existing conditions.”

The government recently published its 10-Year Plan for the NHS, which looks to improve patient outcomes and ensure the sustainability of the health service, by shifting focus onto community services, greater digitalisation and prevention over treatment. Improving workers’ access to healthcare has the potential to reduce long-term illness, boosting economic activity and furthering the government’s wider growth ambitions.

Some 2.8 million working age adults in Britain are currently out of work because of a long-term health condition¹, and more than 200,000 people left work specifically for health reasons in 2023-24 ². This sickness crisis has led to Britain’s economy being 10% smaller than it would otherwise be³, holding back growth and productivity, and costing £150 billion per annum⁴.

To help get more employees to access healthcare, Simplyhealth says it makes it easier and more affordable for employees to access healthcare. 

References
1 NHS England (2024): https://www.england.nhs.uk/long-read/health-work-and-prevention-december-2024/#:~:text=A%20record%204%20million%20people%20are%20not,reason%20for%20being%20out%20of%20the%20workforce.&text=For%20example%2C%2053%25%20of%20people%20out%20of,health%20report%20mental%20health%20as%20the%20reason.
2 Financial Times: https://www.ft.com/content/deab2dc4-b202-408c-b4ef-a5dc5cacef54
3 Findings from Frontier Economics: https://www.telegraph.co.uk/news/2025/06/10/long-term-sickness-economy-ten-percent-smaller-nhs-report/#:~:text=The%20long%2Dterm%20sickness%20crisis,report%20produced%20for%20the%20NHS.
4 Oxera report (2023): The economic cost of ill health among the working-age population