Occupational Health: Taxation

(asked on 16th January 2020) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what discussions he has had with the Prime Minister on the Treasury and the NHS working together to review the tax treatment of workplace occupational health services.


Answered by
Jesse Norman Portrait
Jesse Norman
This question was answered on 23rd January 2020

The Government recognises the valuable work that many employers do in providing for the health of their staff. Keeping more people in work is good for the economy and reduces spending on out-of-work benefits, and potentially demand on the NHS. For employers, investing in employee health and wellbeing can lead to increased workforce productivity and help retain key talent in an organisation.

Improving people’s mental health and putting services on an equal footing with those for physical health remains a priority for this Government. Last year, the Government published a consultation on options to reduce ill health-related job loss. This consultation included potential incentives to encourage more employers to access occupational health services, driving earlier supportive employer action and encourage best practice. However, it also noted that there is limited evidence that making the tax treatment more generous is the most effective lever to incentivise more employers to start offering occupational health provision, if the initial cost is the main barrier for them.

The Government will use the evidence and views gathered during this consultation to develop its proposals further, considering an approach which offers the best value for money and is affordable in the context of the next Spending Review.

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