What's Happening?
Broadstone has released its second UK Employee Benefits landscape report, revealing significant shifts in employer priorities and benefits offerings. Conducted in partnership with Investor in Customers,
the report highlights changes following the Autumn 2024 budget, with 43% of employers introducing salary sacrifice schemes. However, new thresholds announced in the 2025 Autumn Budget have impacted these schemes. The report also notes that 15% of employers have seen a reduction in pension contributions due to affordability issues. Additionally, there is a growing trend towards offering Private Medical Insurance and mental health support, with 63% of organizations providing mental health training and 77% offering employee assistance programs.
Why It's Important?
The report provides valuable insights into how UK employers are adapting to economic and policy changes, particularly in the wake of the global pandemic. The shift towards offering more comprehensive health and wellbeing benefits reflects a growing recognition of the importance of employee health in maintaining productivity. The findings also highlight the challenges employers face in balancing cost pressures with the need to provide competitive benefits packages. This could influence future policy decisions and employer strategies, particularly in relation to pension provisions and health benefits.
What's Next?
As the UK government continues to reform pension provisions, employers may need to further adapt their benefits strategies. The report suggests that employers will increasingly focus on health and wellbeing benefits to attract and retain talent. This could lead to more widespread adoption of Private Medical Insurance and mental health support programs. Additionally, the ongoing economic volatility may prompt further changes in employer benefits offerings, as organizations seek to navigate financial pressures while supporting employee wellbeing.
