PM letter calls for tax exemptions for businesses investing in employees’ wellbeing

We’ve co-signed a letter to the Prime Minister asking him to commit to his pledge to tax exemptions for businesses that support their employees’ mental and physical health.

We believe these exemptions would be instrumental in giving businesses an extra incentive to invest in their employees’ wellbeing in ways such as paying for workplace counselling.

The letter to Boris Johnson has been signed by us and other members of the Working Well Coalition, led by the John Lewis Partnership.

Hadyn Williams, our Chief Executive Officer, who signed the letter on our behalf, said:

Transformative

“We know that counselling can have a transformative effect on employees’ mental health and wellbeing.

“Investing in workplace counselling should be a key priority for employers when it comes to their employees’ because of the positive impact on individuals and its wider organisational benefits, including improved morale, creativity and retention of staff.

“These tax exemptions would be yet another strong argument as to why businesses should fund counselling.

Powerful call

“We’re pleased to be among the signatories of this important letter and hope the Prime Minister will act on this powerful call for change.”

The letter calls for all occupational health services to be a non-taxable benefit in kind to encourage employers to invest in early interventions, such as workplace counselling.

At the moment, employer-provided occupational health services are a taxable benefit and subject to National Insurance and Income Tax.

This can result in an effective tax rate of more than 40 per cent for those employers that settle the taxes on behalf of their employees.

This letter is the latest part of our work with the Working Well Coalition, where we’re represented by our workforce lead Kris Ambler.

The group aims to spearhead a revolution in workplace health and wellbeing.

In July, we were among the signatories on a letter asking the Secretary of State for Health and Social Care and the Secretary of State for Work and Pensions to ensure more is done to improve the health of the nation’s workers.

Dear Prime Minister

We were pleased to read your commitment in the Daily Telegraph last summer to look at ‘offering preferential tax treatment to companies that look after the mental health and wellbeing of their employees in work’ in your first Budget as Prime Minister. We are writing to ask you to keep this commitment in the 11 March 2020 Budget.

We are a group of employers, business groups, charities and health experts who play an important role in supporting the mental and physical health of our nation. Many of us have seen firsthand the impact of long waiting times for mental health treatment or physiotherapy on our employees. We strongly support increased funding for these vital NHS services. We would also like to play our own part in supporting our employees at work and alleviating the immediate pressures on our NHS.

But many businesses large and small find their efforts hampered by the complex tangle of tax rules on early mental health and physio support paid for by employers. No one, especially those on low pay, should be stung by a surprise tax bill after getting help through their employer if they need it.

Workplace health and wellbeing support should be available, regardless of job title or length of service. It’s about businesses working with the NHS and our public health bodies to support employees before they hit crisis point. For example, research from Public Health England found that for every £1 spent on employer-funded cognitive behavioural therapy, £2 was returned in savings to the NHS and employers.

The Government doesn’t tax workers if their employer pays for their bike to cycle to work, or for the electricity they put in their car for work, so why should it tax them when they’re struggling with their mental health or chronic pain at work?

We look forward to working with the Government, NHS and our public health bodies to drive positive change.

Yours sincerely

Tracey Killen, Executive Director of People, John Lewis Partnership
Louise Harry, Health, Safety and Environment Director, Siemens UK
James Timpson, Chief Executive, Timpson Group
John Fielding, Staff Manager, First Group West Yorkshire
Dr Liam O’Toole, Chief Executive, Versus Arthritis
Sarah Hughes, Chief Executive, Centre for Mental Health
Clare Jacklin, Chief Executive, National Rheumatoid Arthritis Society
Nancy Hey, Director, What Works Centre for Wellbeing
Dr Hadyn Williams, Chief Executive, British Association for Counselling and Psychotherapy
Dr Steve Boorman CBE, Chairman, Council for Work and Health
Sir Peter Cheese, Chief Executive, Chartered Institute for Personnel and Development
Nick Pahl, Chief Executive, Society of Occupational Medicine
Genevieve Smyth, Royal College of Occupational Therapists
Anne de Bono, President, Faculty of Occupational Medicine
Louise Aston, Wellbeing Director, Business in the Community
Dr Nick Taylor, Co-founder and Chief Executive, Unmind
Jim Woods, Chief Executive, Better Space
Rob Stephenson, Founder, InsideOut
Katrina Parsons, Human Resources Manager, LSI Architects
Debi O’Donovan, Director, Reward & Employee Benefits Association
Jill Maples, Director of Human Resources, Hermes Parcelnet
Gary Johnston, HEP Director of Operations, Social Finance
Dr Steve Boorman CBE, Director of Employee Health, Empactis
Joy Reymond, Trustee, Vocational Rehabilitation Association
Jen Christie, Director, Rise Well Limited
Derrick Farrell, Chief Executive, Vita Health Group
Alex Goldsmith, Chief Executive, Medigold Health
Eugene Farrell, Chair, UK Employee Assistance Programme Association
Alison Margary, British Occupational Hygiene Society
Paul Roberts, Managing Director, Enlighten
Andrew Gilbey, Network Manager, NHS Health at Work Network

Workforce

In the context of a challenging employment market, driving growth in paid opportunities and bringing employers closer to our professions is a key priority for BACP.

BACP joins John Lewis Partnership’s call for workplace wellbeing revolution

We’ve joined the chain’s Working Well Coalition and co-signed a letter to two Cabinet ministers

15 July 2019

Giving counselling a voice in the Government’s workplace health consultation

We’ve submitted a response to the Health is Everyone’s Business consultation

7 October 2019