Bupa’s Healthy Workforce, Healthy Economy paper, launched at an event in the House of Commons, has revealed that private medical insurance (PMI) provides an annual £2.5bn boost to the economy by helping employees receive faster diagnosis and access to healthcare.
The paper aims to show both the direct economic impact of workplace private healthcare provision, as well as the savings it makes for the NHS.
The research, conducted by WPI Strategy, found that of the total £2.5 billion economic boost, £1.2 billion is generated through reduced sickness absence, while £1.3 billion comes from tackling "presenteeism", where employees are at work but underperforming due to ill-health.
The figures have a particular focus on SMEs, of which there were 5.7 million operating in 2025. The research finds that PMI delivers an average of 22 fewer sickness absence days and 24 additional days’ worth of productivity, resulting in £14,700 in additional Gross Value Added (GVA) per small business every year.
With SMEs often lacking the scale to absorb the impact of long-term employee illness, access to private healthcare acts as a critical safety net. The paper estimates that if sickness absence were reduced by just one day per employee through better health support, the SME sector alone could generate an additional £2 billion for the UK economy annually.
As the government seeks to increase economic growth, the paper argues that workforce health must be treated as a primary economic lever.
By reducing the burden on the NHS, PMI saves the public health sector an estimated £4.2 billion every year, which is equivalent to 100 days of GP appointments or 15 million A&E visits.
The paper also provides an analytical deep dive into some of the most prevalent health-related issues private healthcare provision supports.
Musculoskeletal health conditions, headaches and migraines and mental health conditions lead the way. The paper demonstrates the economic boost and extra workdays provided, broken down by these specific conditions.
Access to PMI could help generate an extra 797,000 annual workdays per year across the UK workforce due to earlier treatment of musculoskeletal issues, with 588,000 saved by treating headaches and migraines, and 448,000 through mental health treatments.
"A healthy workforce is the foundation of a growing economy," Chris Carroll, CEO for Bupa Global, India & UK, said. "In commissioning the Keep Britain Working review, the government has rightly recognised that tackling health-related economic inactivity is an essential priority.
"The good news is that private healthcare makes a measurable difference in keeping the UK well and in work, supporting businesses of all sizes to prosper, increasing access to healthcare and easing pressure across healthcare systems.
"At Bupa we know early intervention changes health outcomes. We are reinvesting our profits to fund healthcare innovation, personalised interventions, fast diagnosis and access to world-leading facilities, clinicians and treatment options. We stand ready to work with government, employers and healthcare providers to boost the health of our workforce and our economy."
Sebastian Rees, head of health for the Institute for Public Policy Research (IPPR), said: "This research is a timely and welcome contribution to one of Britain's most pressing policy debates: how to restore the health of a workforce that lags well behind our international peers.
"It puts hard numbers on the economic and productivity gains delivered by employer‑supported healthcare, from faster access to diagnosis and treatment to reduced absence and higher workforce productivity. We hope it serves as a wake-up call for government and employers alike to invest seriously in keeping Britain's workforce healthy and productive."
Patrick Milnes, head of policy – people & work for the British Chambers of Commerce, commented: "Businesses of all sizes are struggling to find and keep the skilled people they need, and rising sickness absence is making that challenge even harder. Employers want to help, but they need accessible, high‑quality workforce‑health support to respond effectively.
"A new partnership with government is essential to unlock the talent the economy is currently losing, and this research can play a key role in informing this important conversation."
Ben Harrison, director of the Work Foundation at Lancaster University, added: "Stemming the flow of people leaving the UK workforce due to ill-health remains an urgent priority. Once someone leaves work due to a health issue, it can become increasingly difficult to support a sustainable return to employment, meaning early intervention and prevention are key.
"Government and employers have a joint responsibility to deliver on the ambition to 'Keep Britain Working’ and must work together to ensure the potential benefits of new employment rights and the ongoing work led by Sir Charlie Mayfield supports change in those sectors where it is needed most."
